COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | CONSOL Energy Inc. | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Central Index Key | 0001710366 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 001-38147 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,029,202 | |
Entity Tax Identification Number | 82-1954058 | |
Entity Address, Address Line One | 1000 CONSOL Energy Drive | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Canonsburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15317-6506 | |
City Area Code | 724 | |
Local Phone Number | 416-8300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Trading Symbol | CEIX | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue and Other Income: | ||
Revenue from contracts with customers | $ 275,100 | $ 356,982 |
Miscellaneous Other Income | 16,170 | 13,292 |
(Loss) Gain on Sale of Assets | (14) | 339 |
Total Revenue and Other Income | 291,256 | 370,613 |
Costs and Expenses: | ||
Operating and Other Costs | 212,275 | 230,112 |
Depreciation, Depletion and Amortization | 54,943 | 50,724 |
Freight Expense | 3,147 | 6,662 |
Selling, General and Administrative Costs | 17,670 | 21,923 |
(Gain) Loss on Debt Extinguishment | (16,833) | 23,143 |
Interest Expense, net | 15,671 | 18,596 |
Total Costs and Expenses | 286,873 | 351,160 |
Earnings Before Income Tax | 4,383 | 19,453 |
Income Tax Expense (Benefit) | 1,908 | (850) |
Net Income | 2,475 | 20,303 |
Less: Net Income Attributable to Noncontrolling Interest | 108 | 5,868 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | $ 2,367 | $ 14,435 |
Earnings per Share: | ||
Total Basic Earnings per Share (in dollars per share) | $ 0.09 | $ 0.52 |
Total Dilutive Earnings per Share (in dollars per share) | $ 0.09 | $ 0.52 |
Coal Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | $ 255,452 | $ 332,502 |
Terminal Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 16,501 | 17,818 |
Freight Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | $ 3,147 | $ 6,662 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 2,475 | $ 20,303 |
Other Comprehensive Income: | ||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($1,214), ($781)) | 3,624 | 2,460 |
Unrecognized Loss on Derivatives: | ||
Unrealized Loss on Cash Flow Hedges (Net of tax: $933, $0) | (2,773) | 0 |
Other Comprehensive Income | 851 | 2,460 |
Comprehensive Income | 3,326 | 22,763 |
Less: Comprehensive Income Attributable to Noncontrolling Interest | 123 | 5,867 |
Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders | $ 3,203 | $ 16,896 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Actuarially Determined Long-Term Liability Adjustments, Tax | $ 1,214 | $ 781 |
Unrealized Loss on Cash Flow Hedges, Tax | $ (933) | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 78,166 | $ 80,293 |
Restricted Cash | 661 | 0 |
Accounts and Notes Receivable | ||
Trade Receivables, net of Allowance | 113,098 | 131,688 |
Other Receivables, net of Allowance | 33,878 | 40,984 |
Inventories | 58,638 | 54,131 |
Prepaid Expenses and Other Assets | 26,302 | 30,933 |
Total Current Assets | 310,743 | 338,029 |
Property, Plant and Equipment: | ||
Property, Plant and Equipment | 5,053,698 | 5,008,180 |
Less—Accumulated Depreciation, Depletion and Amortization | 2,965,903 | 2,916,015 |
Total Property, Plant and Equipment—Net | 2,087,795 | 2,092,165 |
Other Assets: | ||
Deferred Income Taxes | 102,425 | 103,505 |
Right of Use Asset - Operating Leases | 67,787 | 72,632 |
Other, net of Allowance | 84,718 | 87,471 |
Total Other Assets | 254,930 | 263,608 |
TOTAL ASSETS | 2,653,468 | 2,693,802 |
Current Liabilities: | ||
Accounts Payable | 89,556 | 106,223 |
Current Portion of Long-Term Debt | 67,441 | 50,272 |
Other Accrued Liabilities | 237,261 | 235,769 |
Total Current Liabilities | 394,258 | 392,264 |
Long-Term Debt: | ||
Long-Term Debt | 604,927 | 653,802 |
Finance Lease Obligations | 21,942 | 9,036 |
Total Long-Term Debt | 626,869 | 662,838 |
Deferred Credits and Other Liabilities: | ||
Postretirement Benefits Other Than Pensions | 429,085 | 432,496 |
Pneumoconiosis Benefits | 201,718 | 202,142 |
Asset Retirement Obligations | 254,805 | 250,211 |
Workers’ Compensation | 60,961 | 61,194 |
Salary Retirement | 44,439 | 49,930 |
Operating Lease Liability | 52,975 | 55,413 |
Other | 17,268 | 14,919 |
Total Deferred Credits and Other Liabilities | 1,061,251 | 1,066,305 |
TOTAL LIABILITIES | 2,082,378 | 2,121,407 |
Stockholders' Equity: | ||
Common Stock, $0.01 Par Value; 62,500,000 Shares Authorized, 26,029,202 Issued and Outstanding at March 31, 2020; 25,932,618 Issued and Outstanding at December 31, 2019 | 260 | 259 |
Capital in Excess of Par Value | 528,062 | 523,762 |
Retained Earnings | 258,972 | 259,903 |
Accumulated Other Comprehensive Loss | (347,889) | (348,725) |
Total CONSOL Energy Inc. Stockholders' Equity | 439,405 | 435,199 |
Noncontrolling Interest | 131,685 | 137,196 |
TOTAL EQUITY | 571,090 | 572,395 |
TOTAL LIABILITIES AND EQUITY | $ 2,653,468 | $ 2,693,802 |
CONSOLIDATED BALANCE SHEETS - P
CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 62,500,000 | 62,500,000 |
Common stock shares issued | 26,029,202 | 25,932,618 |
Common stock shares outstanding | 26,029,202 | 25,932,618 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total CONSOL Energy Inc. Stockholders' Equity | Noncontrolling Interest | Actuarially Determined Long-Term Liability Adjustments (Net of $1,214 Tax) | Actuarially Determined Long-Term Liability Adjustments (Net of $1,214 Tax)Retained Earnings | Actuarially Determined Long-Term Liability Adjustments (Net of $1,214 Tax)Total CONSOL Energy Inc. Stockholders' Equity |
Beginning balance at Dec. 31, 2018 | $ 551,611 | $ 274 | $ 550,995 | $ 182,148 | $ (323,482) | $ 409,935 | $ 141,676 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 20,303 | 14,435 | 14,435 | 5,868 | ||||||
Net Actuarial Gain (Loss) | 2,460 | 2,461 | 2,461 | (1) | ||||||
Interest Rate Hedge, Net | 0 | |||||||||
Comprehensive Income | 22,763 | 14,435 | 2,461 | 16,896 | 5,867 | |||||
Issuance of Common Stock | 0 | 2 | (2) | |||||||
Amortization of Stock-Based Compensation Awards | 7,450 | 7,053 | 7,053 | 397 | ||||||
Shares/Units Withheld for Taxes | (4,743) | (3,863) | (3,863) | (880) | ||||||
Distributions to Noncontrolling Interest | (5,559) | (5,559) | ||||||||
Ending balance at Mar. 31, 2019 | 571,522 | 276 | 554,183 | 196,583 | (321,021) | 430,021 | 141,501 | |||
Beginning balance at Dec. 31, 2019 | 572,395 | 259 | 523,762 | 259,903 | (348,725) | 435,199 | 137,196 | $ (3,298) | $ (3,298) | $ (3,298) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 2,475 | 2,367 | 2,367 | 108 | ||||||
Net Actuarial Gain (Loss) | 3,624 | 3,609 | 3,609 | 15 | ||||||
Interest Rate Hedge, Net | (2,773) | (2,773) | (2,773) | |||||||
Comprehensive Income | 3,326 | 2,367 | 836 | 3,203 | 123 | |||||
Issuance of Common Stock | 0 | 1 | (1) | |||||||
Amortization of Stock-Based Compensation Awards | 5,014 | 4,856 | 4,856 | 158 | ||||||
Shares/Units Withheld for Taxes | (772) | (555) | (555) | (217) | ||||||
Distributions to Noncontrolling Interest | (5,575) | (5,575) | ||||||||
Ending balance at Mar. 31, 2020 | $ 571,090 | $ 260 | $ 528,062 | $ 258,972 | $ (347,889) | $ 439,405 | $ 131,685 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Actuarially Determined Long-Term Liability Adjustments, Tax | $ 1,214 | $ 781 |
Interest Rate Hedge, Tax | (933) | $ 0 |
Impact of ASC 326 Adoption | ||
Cumulative Change in Accounting Principle, Tax | $ (1,109) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 2,475 | $ 20,303 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation, Depletion and Amortization | 54,943 | 50,724 |
Loss (Gain) on Sale of Assets | 14 | (339) |
Stock/Unit-Based Compensation | 5,014 | 7,450 |
Amortization of Debt Issuance Costs | 1,444 | 1,976 |
(Gain) Loss on Debt Extinguishment | (16,833) | 23,143 |
Deferred Income Taxes | 1,908 | (850) |
Equity in Earnings of Affiliates | 315 | 0 |
Changes in Operating Assets: | ||
Accounts and Notes Receivable | 23,064 | (16,850) |
Inventories | (4,507) | (6,242) |
Prepaid Expenses and Other Assets | 4,845 | 2,761 |
Changes in Other Assets | 191 | 10,080 |
Changes in Operating Liabilities: | ||
Accounts Payable | (15,726) | (10,695) |
Other Operating Liabilities | 3,899 | 12,419 |
Changes in Other Liabilities | (9,646) | (11,709) |
Net Cash Provided by Operating Activities | 51,400 | 82,171 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (27,178) | (34,171) |
Proceeds from Sales of Assets | 0 | 311 |
Net Cash Used in Investing Activities | (27,178) | (33,860) |
Cash Flows from Financing Activities: | ||
Proceeds from Finance Lease Obligations | 16,293 | 0 |
Payments on Finance Lease Obligations | (4,899) | (4,537) |
Distributions to Noncontrolling Interest | (5,575) | (5,559) |
Shares/Units Withheld for Taxes | (772) | (4,743) |
Debt-Related Financing Fees | (643) | (18,514) |
Net Cash Used in Financing Activities | (25,688) | (136,478) |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (1,466) | (88,167) |
Cash and Cash Equivalents and Restricted Cash at Beginning of Period | 80,293 | 264,935 |
Cash and Cash Equivalents and Restricted Cash at End of Period | 78,827 | 176,768 |
Non-Cash Investing and Financing Activities: | ||
Finance Lease | 7,023 | 0 |
Longwall Shield Rebuild | 9,129 | 0 |
Term Loan A | ||
Cash Flows from Financing Activities: | ||
Proceeds from Term Loan A | 0 | 26,250 |
Payments on Debt | (3,750) | 0 |
Term Loan B | ||
Cash Flows from Financing Activities: | ||
Payments on Debt | (688) | (122,375) |
11.00% Senior Secured Second Lien Notes due November 2025 | ||
Cash Flows from Financing Activities: | ||
Payments on Debt | (25,480) | (7,000) |
Other Asset-Backed Financing Arrangements | ||
Cash Flows from Financing Activities: | ||
Payments on Debt | $ (174) | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2019 has been derived from the Audited Consolidated Financial Statements at that date but does not include all disclosures required by GAAP. This Form 10-Q report should be read in conjunction with CONSOL Energy Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019 . Basis of Consolidation The Consolidated Financial Statements include the accounts of CONSOL Energy Inc. and its wholly-owned and majority-owned and/or controlled subsidiaries. The portion of these entities that is not owned by the Company is presented as non-controlling interest. All significant intercompany transactions and accounts have been eliminated in consolidation. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This Update also provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Management has elected to apply this Update subsequent to March 12, 2020. Management is currently evaluating the impact of this guidance, but does not expect this update to have a material impact on the Company's financial statements. In January 2020, the FASB issued ASU 2020-01 - Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this Update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Management does not expect this update to have a material impact on the Company's financial statements. In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740) to reduce the complexity of accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in Update 2019-12 will remove the following exceptions: (1) the exception to the incremental approach for intra-period tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in Update 2019-12 will also simplify the accounting for income taxes in the areas of franchise tax, step up in the tax basis of goodwill associated with a business combination, allocation of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements, and presentation of the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Update adds minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. These changes will be effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Management does not expect this update to have a material impact on the Company's financial statements. In August 2018, the FASB issued ASU 2018-15 - Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments in Update 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements of capitalizing implementation costs incurred to develop or obtain internal-use software. These changes are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. CONSOL Energy adopted this guidance during the three months ended March 31, 2020 , and there was no material impact on the Company's financial statements. In August 2018, the FASB issued ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These changes will be effective for fiscal years ending after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13 - Fair Value Measurement (Topic 820) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements on fair value measurements including the consideration of costs and benefits. These changes are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. CONSOL Energy adopted this guidance during the three months ended March 31, 2020 , and there was no material impact on the Company's financial statements. Earnings per Share Basic earnings per share are computed by dividing net income attributable to CONSOL Energy Inc. shareholders by the weighted average shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include additional shares from restricted stock units and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be anti-dilutive: For the Three Months Ended March 31, 2020 2019 Anti-Dilutive Restricted Stock Units 141,279 — Anti-Dilutive Performance Share Units — 8,086 141,279 8,086 The computations for basic and dilutive earnings per share are as follows: For the Three Months Ended Dollars in thousands, except per share data March 31, 2020 2019 Numerator: Net Income $ 2,475 $ 20,303 Less: Net Income Attributable to Noncontrolling Interest 108 5,868 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 2,367 $ 14,435 Denominator: Weighted-average shares of common stock outstanding 25,987,155 27,530,859 Effect of dilutive shares 265,056 308,534 Weighted-average diluted shares of common stock outstanding 26,252,211 27,839,393 Earnings per Share: Basic $ 0.09 $ 0.52 Dilutive $ 0.09 $ 0.52 As of March 31, 2020 , CONSOL Energy has 500,000 shares of preferred stock, none of which are issued or outstanding. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: The following table disaggregates CONSOL Energy's revenue from contracts with customers to depict how the nature, amount, timing and uncertainty of the Company's revenues and cash flows are affected by economic factors: Three Months Ended March 31, 2020 March 31, 2019 Coal Revenue $ 255,452 $ 332,502 Terminal Revenue 16,501 17,818 Freight Revenue 3,147 6,662 Total Revenue from Contracts with Customers $ 275,100 $ 356,982 CONSOL Energy's coal revenue is generally recognized when title passes to the customer and the price is fixed and determinable. The Company has determined that each ton of coal represents a separate and distinct performance obligation. The Company's coal supply contracts and other sales and operating revenue contracts vary in length from short-term to long-term contracts and do not typically have significant financing components. The estimated transaction price from each of the Company's contracts is based on the total amount of consideration to which the Company expects to be entitled under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. The estimated transaction price for each contract is allocated to the Company's performance obligations based on relative stand-alone selling prices determined at contract inception. Coal Revenue Revenues are generally recognized when title passes to the customers and the price is fixed and determinable. Generally, title passes when coal is loaded at the central preparation facility and, on occasion, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed and determinable and adjusted for nominal quality adjustments. Some coal contracts also contain positive electric power price-related adjustments, which represent market-driven price adjustments, wherein no additional value is exchanged, in addition to a fixed base price per ton. The Company’s coal contracts generally do not allow for retroactive adjustments to pricing after title to the coal has passed. Some of the Company's contracts span multiple years and have annual pricing modifications, based upon market-driven or inflationary adjustments, where no additional value is exchanged. Management believes that the invoice price is the most appropriate rate at which to recognize revenue. While CONSOL Energy does, from time to time, experience costs of obtaining coal customer contracts with amortization periods greater than one year, those costs are generally immaterial to the Company's net income. At March 31, 2020 and December 31, 2019 , the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2020 and 2019 , the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Terminal Revenue Terminal revenues are attributable to the Company's CONSOL Marine Terminal and include revenues earned from providing receipt and unloading of coal from rail cars, transporting coal from the receipt point to temporary storage or stockpile facilities located at the Terminal, stockpiling, blending, weighing, sampling, redelivery, and loading of coal onto vessels. Revenues for these services are generally earned on a rateable basis, and performance obligations are considered fulfilled as the services are performed. The CONSOL Marine Terminal does not normally experience material costs of obtaining customer contracts with amortization periods greater than one year. At March 31, 2020 and December 31, 2019 , the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2020 and 2019 , the Company has not recognized any amortization of previously existing capitalized costs of obtaining Terminal customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Freight Revenue Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its central preparation plant. The cost to transport the Company's coal to the ultimate sales point is passed through to the Company's customers and CONSOL Energy recognizes the freight revenue equal to the transportation costs when title of the coal passes to the customer. Contract Balances Contract assets are recorded separately from trade receivables in the Company's Consolidated Balance Sheets and are reclassified to trade receivables as title passes to the customer and the Company's right to consideration becomes unconditional. Payments for coal shipments are typically due within two to four weeks from the invoice date. CONSOL Energy typically does not have material contract assets that are stated separately from trade receivables since the Company's performance obligations are satisfied as control of the goods or services passes to the customer, thereby granting the Company an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of the Company's performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the good or service passes to the customer. |
MISCELLANEOUS OTHER INCOME
MISCELLANEOUS OTHER INCOME | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
MISCELLANEOUS OTHER INCOME | MISCELLANEOUS OTHER INCOME: For the Three Months Ended March 31, 2020 2019 Contract Buyout $ 10,825 $ 1,048 Royalty Income - Non-Operated Coal 4,504 6,210 Rental Income 497 617 Interest Income 244 887 Property Easements and Option Income 63 979 Purchased Coal Sales — 3,186 Other 37 365 Miscellaneous Other Income $ 16,170 $ 13,292 |
COMPONENTS OF PENSION AND OTHER
COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS | COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS: The components of Net Periodic Benefit (Credit) Cost are as follows: Pension Benefits Other Post-Employment Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Service Cost $ 296 $ 987 $ — $ — Interest Cost 5,044 6,275 3,199 4,580 Expected Return on Plan Assets (10,455 ) (10,114 ) — — Amortization of Prior Service Credits — (92 ) (601 ) (601 ) Amortization of Actuarial Loss 1,730 1,490 2,319 2,315 Net Periodic Benefit (Credit) Cost $ (3,385 ) $ (1,454 ) $ 4,917 $ 6,294 (Credits) expenses related to pension and other post-employment benefits are reflected in Operating and Other Costs in the Consolidated Statements of Income. |
COMPONENTS OF COAL WORKERS_ PNE
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS | 3 Months Ended |
Mar. 31, 2020 | |
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 components of Net Periodic Benefit Cost are as follows: CWP Workers' Compensation Three Months Ended Three Months Ended 2020 2019 2020 2019 Service Cost $ 1,151 $ 948 $ 1,569 $ 1,421 Interest Cost 1,551 1,750 461 646 Amortization of Actuarial Loss (Gain) 1,401 254 (122 ) (193 ) State Administrative Fees and Insurance Bond Premiums — — 621 587 Net Periodic Benefit Cost $ 4,103 $ 2,952 $ 2,529 $ 2,461 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The Company has evaluated the impact of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was signed into law by the President of the United States in March 2020. The CARES Act has various income tax related provisions, including temporary net operating loss carryback and limitation measures, a relaxation of the limitation on interest deductions, the postponement of statutory filing dates, and a technical correction of the 2017 Tax Cuts and Jobs Act related to qualified improvement property. The Company's effective tax rate is based on its estimated full year effective tax rate. The effective tax rate for the three months ended March 31, 2020 differs from the U.S. federal statutory rate of 21% , primarily due to the income tax benefit for excess percentage depletion, offset by the impact of discrete tax expense related to equity compensation and the unfavorable impact on percentage depletion related to the additional interest deduction available under the CARES Act. The CARES Act increased the amount of deductible interest from 30% of adjusted taxable income to 50% for tax years 2019 and 2020, which generates current cash tax benefit, but also reduces the base of earnings upon which percentage depletion was computed. The effective tax rate for the three months ended March 31, 2020 was 44.6% , composed of a tax benefit of (3.1)% from operations and discrete tax expense of $902 related to equity compensation and $1,139 related to the effect of the CARES Act, as noted above. The effective tax rate for the three months ended March 31, 2019 was (4.4)% , composed of a tax benefit of (2.5)% from operations and a discrete tax benefit of (1.9)% primarily related to equity compensation. The effective tax rate for the three months ended March 31, 2019 differs from the U.S. federal statutory rate of 21% , primarily due to the income tax benefit for excess percentage depletion. The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. For the three months ended March 31, 2020 and the year ended December 31, 2019 , the Company did not have any unrecognized tax benefits. If accrual for interest or penalties is required, it is the Company's policy to include these as a component of income tax expense. The Company is subject to taxation in the United States and its various states, as well as Canada and its various provinces. Under the provisions of the tax matters agreement entered into between the Company and its former parent on November 28, 2017 (the “TMA”), certain subsidiaries of the Company are subject to examination for tax years for the period January 1, 2016 through the three months ended March 31, 2020 for certain state and foreign returns. Further, the Company is subject to examination for the period November 28, 2017 through the three months ended March 31, 2020 for federal and certain state returns. |
CREDIT LOSSES
CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
CREDIT LOSSES | CREDIT LOSSES: Effective January 1, 2020, the Company adopted ASU 2016-013, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments using a modified retrospective approach. This ASU replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade and other receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under previous accounting guidance. The Company recorded a cumulative-effect adjustment to retained earnings in the amount of $3,298 , net of $1,109 of income taxes, for expected credit losses on financial assets at the adoption date. The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption Trade Receivables $ 3,051 $ 2,100 $ 951 Other Receivables 3,372 711 2,661 Other Assets 795 — 795 Allowance for Credit Losses on Receivables $ 7,218 $ 2,811 $ 4,407 The Company is exposed to credit losses primarily through sales of products and services. The Company's expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade and other accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on an aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company's monitoring activities include timely account reconciliations, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the novel coronavirus (COVID-19) pandemic and determined that the estimate of credit losses was not significantly impacted. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes to the assessment of anticipated payment, changes in economic conditions, current industry trends in the markets the Company serves, and changes in the financial health of the Company's counterparties. The following table provides a roll-forward of the allowance for credit losses by portfolio segment that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. Trade Receivables Other Receivables Other Assets Beginning Balance, January 1, 2020 $ 2,100 $ 711 $ — Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings 951 2,661 795 Provision for expected credit losses (643 ) 1,242 35 Ending Balance, March 31, 2020 $ 2,408 $ 4,614 $ 830 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES: Inventory components consist of the following: March 31, December 31, Coal $ 4,621 $ 2,484 Supplies 54,017 51,647 Total Inventories $ 58,638 $ 54,131 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, 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 the Company's coal operations. |
ACCOUNTS RECEIVABLE SECURITIZAT
ACCOUNTS RECEIVABLE SECURITIZATION | 3 Months Ended |
Mar. 31, 2020 | |
Short-term Debt [Abstract] | |
ACCOUNTS RECEIVABLE SECURITIZATION | ACCOUNTS RECEIVABLE SECURITIZATION: CONSOL Energy and certain of its U.S. subsidiaries are parties to a trade accounts receivable securitization facility with financial institutions for the sale on a continuous basis of eligible trade accounts receivable. In March 2020, the securitization facility was amended to, among other things, extend the maturity date from August 30, 2021 to March 27, 2023. Pursuant to the securitization facility, CONSOL Thermal Holdings LLC sells current and future trade receivables to CONSOL Pennsylvania Coal Company LLC. CONSOL Marine Terminals LLC and CONSOL Pennsylvania Coal Company LLC sell and/or contribute current and future trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC (the “SPV”). The SPV, in turn, pledges its interests in the receivables to PNC Bank, which either makes loans or issues letters of credit on behalf of the SPV. The maximum amount of advances and letters of credit outstanding under the securitization facility may not exceed $100 million . Loans under the securitization facility accrue interest at a reserve-adjusted LIBOR market index rate equal to the one-month Eurodollar rate. Loans and letters of credit under the securitization facility also accrue a program fee and a letter of credit participation fee, respectively, ranging from 2.00% to 2.50% per annum depending on the total net leverage ratio of CONSOL Energy. In addition, the SPV paid certain structuring fees to PNC Capital Markets LLC and will pay other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum. At March 31, 2020 , the Company's eligible accounts receivable yielded $30,258 of borrowing capacity. At March 31, 2020 , the facility had no outstanding borrowings and $30,919 of letters of credit outstanding, leaving no unused capacity. CONSOL Energy posted $661 of cash collateral to secure the difference in the outstanding letters of credit and the eligible accounts receivable. Cash collateral of $661 is included in Restricted Cash in the Consolidated Balance Sheets. At December 31, 2019 , the Company's eligible accounts receivable yielded $41,282 of borrowing capacity. At December 31, 2019 , the facility had no outstanding borrowings and $41,211 of letters of credit outstanding, leaving available borrowing capacity of $71 . Costs associated with the receivables facility totaled $341 and $382 for the three months ended March 31, 2020 and 2019, respectively. These costs have been recorded as financing fees which are included in Operating and Other Costs in the Consolidated Statements of Income. The Company has not derecognized any receivables due to its continued involvement in the collections efforts. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment consists of the following: March 31, December 31, Plant and Equipment $ 3,066,656 $ 3,028,514 Coal Properties and Surface Lands 873,597 872,909 Airshafts 443,600 437,003 Mine Development 342,707 342,706 Advance Mining Royalties 327,138 327,048 Total Property, Plant and Equipment 5,053,698 5,008,180 Less: Accumulated Depreciation, Depletion and Amortization 2,965,903 2,916,015 Total Property, Plant and Equipment, Net $ 2,087,795 $ 2,092,165 Coal reserves are controlled either through fee ownership or by lease. The duration of the leases vary; however, the lease terms are generally 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, 2020 and December 31, 2019 , property, plant and equipment includes gross assets under finance leases of $ 75,435 and $ 52,729 , respectively. Accumulated amortization for finance leases was $ 37,861 and $ 31,373 at March 31, 2020 and December 31, 2019 , respectively. Amortization expense for assets under finance leases approximated $4,964 and $3,914 for the three months ended March 31, 2020 and 2019 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES: March 31, December 31, 2019 Subsidence Liability $ 96,022 $ 90,645 Accrued Payroll and Benefits 15,674 21,102 Accrued Interest 9,280 6,281 Accrued Other Taxes 5,407 4,753 Litigation 2,685 2,565 Short-Term Incentive Compensation 1,456 3,997 Other 12,139 9,719 Current Portion of Long-Term Liabilities: Postretirement Benefits Other than Pensions 31,359 31,833 Asset Retirement Obligations 21,741 21,741 Operating Lease Liability 18,249 19,479 Pneumoconiosis Benefits 12,251 12,331 Workers' Compensation 10,998 11,323 Total Other Accrued Liabilities $ 237,261 $ 235,769 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: March 31, December 31, Debt: Term Loan B due in September 2024 (Principal of $272,250 and $272,938 less Unamortized Discount of $1,125 and $1,187, 5.49% and 6.30% Weighted Average Interest Rate, respectively) $ 271,125 $ 271,751 11.00% Senior Secured Second Lien Notes due November 2025 178,452 221,628 MEDCO Revenue Bonds in Series due September 2025 at 5.75% 102,865 102,865 Term Loan A due in March 2023 (4.74% and 5.55% Weighted Average Interest Rate, respectively) 85,000 88,750 Other Asset-Backed Financing Arrangements 18,243 9,289 Advance Royalty Commitments (10.78% Weighted Average Interest Rate) 1,895 1,895 Less: Unamortized Debt Issuance Costs 8,966 10,323 648,614 685,855 Less: Amounts Due in One Year* 43,687 32,053 Long-Term Debt $ 604,927 $ 653,802 * Excludes current portion of Finance Lease Obligations of $23,754 and $18,219 at March 31, 2020 and December 31, 2019 , respectively. In November 2017, CONSOL Energy entered into a revolving credit facility with commitments up to $300 million (the “Revolving Credit Facility”), a Term Loan A Facility of up to $100 million (the “TLA Facility”) and a Term Loan B Facility of up to $400 million (the “TLB Facility”, and together with the Revolving Credit Facility and the TLA Facility, the “Senior Secured Credit Facilities”). On March 28, 2019, the Company amended the Senior Secured Credit Facilities (the “amendment”) to increase the borrowing commitment of the Revolving Credit Facility to $400 million and reallocate the principal amounts outstanding under the TLA Facility and TLB Facility. As a result, the principal amount outstanding under the TLA Facility was $100 million and the principal amount outstanding under the TLB Facility was $275 million . Borrowings under the Company's Senior Secured Credit Facilities bear interest at a floating rate which can be, at the Company's option, either (i) LIBOR plus an applicable margin or (ii) an alternate base rate plus an applicable margin. The applicable margin for the Revolving Credit Facility and TLA Facility depends on the total net leverage ratio, whereas the applicable margin for the TLB Facility is fixed. The amendment reduced the applicable margin by 50 basis points on both the Revolving Credit Facility and the TLA Facility, and by 150 basis points on the TLB Facility. The amendment also extended the maturity dates of the Senior Secured Credit Facilities. The maturity date of the Revolving Credit and TLA Facilities was extended from November 28, 2021 to March 28, 2023. The TLB Facility's maturity date was extended from November 28, 2022 to September 28, 2024. Obligations under the Senior Secured Credit Facilities (Term Loan B and Term Loan A, together with the Revolving Credit Facility, on which there were no outstanding borrowings at March 31, 2020 ) are guaranteed by (i) all owners of the 75% undivided economic interest in the PAMC held by the Company, (ii) any other members of the Company’s group that own any portion of the collateral securing the Revolving Credit Facility, and (iii) subject to certain customary exceptions and agreed materiality thresholds, all other existing or future direct or indirect wholly-owned restricted subsidiaries of the Company (excluding the Partnership and its wholly-owned subsidiaries). The obligations are secured by, subject to certain exceptions (including a limitation of pledges of equity interests in certain subsidiaries and certain thresholds with respect to real property), a first-priority lien on (i) the Company’s 75% undivided economic interest in the PAMC, (ii) the limited partner units of the Partnership held by the Company, (iii) the equity interests in CONSOL Coal Resources GP LLC held by the Company (iv) the CONSOL Marine Terminal and (v) the 1.5 billion tons of Greenfield Reserves. The Senior Secured Credit Facilities contain a number of customary affirmative covenants. In addition, the Senior Secured Credit Facilities contain a number of negative covenants, including (subject to certain exceptions) limitations on (among other things): indebtedness, liens, investments, acquisitions, dispositions, restricted payments, and prepayments of junior indebtedness. The amendment expanded the covenants relating to finance leases, general investments, joint venture investments and annual share repurchase baskets. The amendment also amended the restricted payments covenant to permit up to a $50 million annual dividend. The Senior Secured Credit Facilities also include (i) a maximum first lien gross leverage ratio, (ii) a maximum total net leverage ratio, and (iii) a minimum fixed charge coverage ratio. CONSOL Energy must maintain a maximum first lien gross leverage ratio covenant of no more than 1.75 to 1.00. The maximum first lien gross leverage ratio is calculated as the ratio of Consolidated First Lien Debt to Consolidated EBITDA, excluding the Partnership. The maximum first lien gross leverage ratio was 1.45 to 1.00 at March 31, 2020 . CONSOL Energy must maintain a maximum total net leverage ratio covenant of no more than 2.75 to 1.00. The maximum total net leverage ratio is calculated as the ratio of Consolidated Indebtedness, minus Cash on Hand, to Consolidated EBITDA, excluding the Partnership. The maximum total net leverage ratio was 2.17 to 1.00 at March 31, 2020 . Consolidated EBITDA, as used in the covenant calculation, excludes non-cash compensation expenses, non-recurring transaction expenses, extraordinary gains and losses, gains and losses on discontinued operations, non-cash charges related to legacy employee liabilities and gains and losses on debt extinguishment, and includes cash distributions received from the Partnership and subtracts cash payments related to legacy employee liabilities. The facilities also include a minimum fixed charge coverage covenant of no less than 1.10 to 1.00, measured quarterly. The minimum fixed charge coverage ratio is calculated as the ratio of Consolidated EBITDA to Consolidated Fixed Charges, excluding the Partnership. Consolidated Fixed Charges, as used in the covenant calculation, include cash interest payments, cash payments for income taxes, scheduled debt repayments, dividends paid, and Maintenance Capital Expenditures. The minimum fixed charge coverage ratio was 1.27 to 1.00 at March 31, 2020 . The Company was in compliance with all of its debt covenants as of March 31, 2020 . The TLB Facility also includes a financial covenant that requires the Company to repay a certain amount of its borrowings under the TLB Facility within ten business days after the date it files its Form 10-K with the Securities and Exchange Commission if the Company has excess cash flow (as defined in the credit agreement for the Senior Secured Credit Facilities) during the year covered by the applicable Form 10-K. During the three months ended March 31, 2019, CONSOL Energy made the required repayment of approximately $110 million based on the amount of the Company's excess cash flow as of December 31, 2018. For fiscal year 2018, such repayment was equal to 75% of the Company's excess cash flow less any voluntary prepayments of its borrowings under the TLB Facility made by the Company during 2018. For all subsequent fiscal years, the required repayment is equal to a certain percentage of the Company’s excess cash flow for such year, ranging from 0% to 75% depending on the Company’s total net leverage ratio, less the amount of certain voluntary prepayments made by the Company, if any, under the TLB Facility during such fiscal year. The amendment reduced the maximum amount of the mandatory annual excess cash flow sweep under the TLB Facility by 25% . Based on the Company's excess cash flow calculation, no repayment was required with respect to the year ended December 31, 2019. As such, as of December 31, 2019 , no amount related to the prepayment of the TLB Facility in connection with the excess cash flow requirement has been classified as Current Portion of Long-Term Debt in the Consolidated Balance Sheets. The amount of excess cash flow is a covenant feature only applicable as of the Company's year-end and will be calculated as of December 31, 2020. At March 31, 2020 , the Revolving Credit Facility had no borrowings outstanding and $79,880 of letters of credit outstanding, leaving $320,120 of unused capacity. At December 31, 2019 , the Revolving Credit Facility had no borrowings outstanding and $69,588 of letters of credit outstanding, leaving $330,412 of unused capacity. From time to time, CONSOL Energy is required to post financial assurances to satisfy contractual and other requirements generated in the normal course of business. Some of these assurances are posted to comply with federal, state or other government agencies' statutes and regulations. CONSOL Energy sometimes uses letters of credit to satisfy these requirements and these letters of credit reduce the Company's borrowing facility capacity. In November 2017, CONSOL Energy issued $300 million in aggregate principal amount of 11.00% Senior Secured Second Lien Notes due 2025 (the “Second Lien Notes”) pursuant to an indenture (the “Indenture”) dated as of November 13, 2017, by and between the Company and UMB Bank, N.A., a national banking association, as trustee and collateral trustee (the “Trustee”). On November 28, 2017, certain subsidiaries of the Company executed a supplement to the Indenture and became party to the Indenture as a guarantor (the “Guarantors”). The Second Lien Notes are secured by second priority liens on substantially all of the assets of the Company and the Guarantors that are pledged and on a first-priority basis as collateral securing the Company’s obligations under the Senior Secured Credit Facilities (described above), subject to certain exceptions under the Indenture. The Indenture contains covenants that will limit the ability of the Company and the Guarantors, to (i) incur, assume or guarantee additional indebtedness or issue preferred stock; (ii) create liens to secure indebtedness; (iii) declare or pay dividends on the Company’s common stock, redeem stock or make other distributions to the Company’s stockholders; (iv) make investments; (v) restrict dividends, loans or other asset transfers from the Company’s restricted subsidiaries; (vi) merge or consolidate, or sell, transfer, lease or dispose of substantially all of the Company’s assets; (vii) sell or otherwise dispose of certain assets, including equity interests in subsidiaries; (viii) enter into transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. If the Second Lien Notes achieve an investment grade rating from both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. and no default under the Indenture exists, many of the foregoing covenants will terminate and cease to apply. During the three months ended March 31, 2020 , the Company repurchased $43,176 of its outstanding 11.00% Senior Secured Second Lien Notes due in 2025. During the three months ended March 31, 2019 , the Company made a required repayment of approximately $110 million on the TLB Facility (discussed above) and amended the Senior Secured Credit Facilities. The Company also repurchased $7,000 of its outstanding 11.00% Senior Secured Second Lien Notes due in 2025 during the three months ended March 31, 2019 . As part of these transactions, $16,833 and $23,143 was included in (Gain) Loss on Debt Extinguishment on the Consolidated Statements of Income for the three months ended March 31, 2020 and 2019, respectively. The Company is a borrower under two asset-backed financing arrangements related to certain equipment. The equipment, which has an approximate value of $18,243 , fully collateralizes the loans. As of March 31, 2020 , a total of $14,900 matures in December 2020 and $3,343 matures in September 2024. The loans had a weighted average interest rate of 5.42% and 5.07% at March 31, 2020 and December 31, 2019, respectively. During the year ended December 31, 2019, the Company entered into interest rate swaps, which effectively converted $150,000 of the TLB Facility's floating interest rate to a fixed interest rate for the twelve months ending December 31, 2020 and 2021, and $50,000 of the TLB Facility's floating interest rate to a fixed interest rate for the twelve months ending December 31, 2022. The interest rate swaps qualify for cash flow hedge accounting treatment and as such, the change in the fair value of the interest rate swaps is recorded on the Company's Consolidated Balance Sheets as an asset or liability. The effective portion of the gains or losses is reported as a component of accumulated other comprehensive loss and the ineffective portion is reported in earnings. At March 31, 2020 and December 31, 2019, the interest rate swap contracts were reflected in the Consolidated Balance Sheets at their fair value of $3,861 and $154 , respectively, which is recorded in Other Accrued Liabilities and Other Liabilities. The fair value of the interest rate swaps reflected an unrealized loss of $2,773 (net of $(933) tax) at March 31, 2020 . The unrealized loss is included on the Consolidated Statements of Stockholders' Equity as part of accumulated other comprehensive loss, as well as on the Consolidated Statements of Comprehensive Income as unrealized loss on cash flow hedges. Some of the Company's interest rate swaps reached their effective date in the three months ending March 31, 2020 . As such, a gain of $4 was recognized in interest expense in the Consolidated Statements of Income. During 2020, notional amounts of $150,000 will become effective. In the next 12 months , the Company expects a loss of approximately $1,667 to be reclassified into earnings. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES: The Company and its former parent entered into a separation and distribution agreement on November 28, 2017 that implemented the legal and structural separation of the Company from its former parent. The separation and distribution agreement also identified the assets of the Coal Business that were transferred to the Company and the liabilities and contracts related to the Coal Business that were assumed by the Company as part of the separation and distribution, and provides post-closing indemnification obligations and procedures between the Company and its former parent relating to the liabilities of the Coal Business that the Company assumed. The Company 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. The Company accrues the estimated loss for these lawsuits and claims when the loss is probable and reasonably estimable. The Company’s 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 Company as of March 31, 2020 . It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to the Company’s financial position, results of operations or cash flows; however, such amounts cannot be reasonably estimated. The amount claimed against the Company as of March 31, 2020 is disclosed below when an amount is expressly stated in the lawsuit or claim, which is not often the case. Fitzwater Litigation: Three nonunion retired coal miners have sued Fola Coal Company LLC, Consolidation Coal Company (“CCC”) and CONSOL of Kentucky Inc. (“COK”) (as well as the Company's former parent) in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. The Plaintiffs contend they relied to their detriment on oral statements and promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were allegedly denied access to Summary Plan Documents that clearly reserved the right to modify or terminate the Retiree Health and Welfare Plan subject to Plaintiffs’ claims. Pursuant to Plaintiffs’ amended complaint filed on April 24, 2017, Plaintiffs request that retiree health benefits be reinstated and seek to represent a class of all nonunion retirees who were associated with AMVEST and COK areas of operation. On October 15, 2019, Plantiffs’ supplemental motion for class certification was denied on all counts. On April 1, 2020, the Court issued a revised scheduling order for the remaining individual claims, setting August 4, 2020 as the trial date. The Company believes it has a meritorious defense and intends to vigorously defend this suit. Casey Litigation: A class action lawsuit was filed on August 23, 2017 on behalf of two nonunion retired coal miners against CCC, COK, CONSOL Buchanan Mining Co., LLC and Kurt Salvatori in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. Filed by the same lawyers who filed the Fitzwater litigation, and raising nearly identical claims, the Plaintiffs contend they relied to their detriment on oral promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were not provided with copies of Summary Plan Documents clearly reserving to the Company the right to modify or terminate the Retiree Health and Welfare Plan. Plaintiffs request that retiree health benefits be reinstated for them and their dependents and seek to represent a class of all nonunion retirees of any subsidiary of the Company's former parent that operated or employed individuals in McDowell or Mercer Counties, West Virginia, or Buchanan or Tazewell Counties, Virginia whose retiree welfare benefits were terminated. On December 1, 2017, the trial court judge in Fitzwater signed an order to consolidate Fitzwater with Casey. The Casey complaint was amended on March 1, 2018 to add new plaintiffs, add defendant CONSOL Pennsylvania Coal Company, LLC and eliminate defendant CONSOL Buchanan Mining Co., LLC in an attempt to expand the class of retirees. On October 15, 2019, Plantiffs’ supplemental motion for class certification was denied on all counts. On April 1, 2020, the Court issued a revised scheduling order for the remaining individual claims, setting August 4, 2020 as the trial date. The Company believes it has a meritorious defense and intends to vigorously defend this suit. Other Matters: Various Company subsidiaries are defendants in certain other legal proceedings arising out of the conduct of the Coal Business prior to the separation and distribution, and the Company is also a defendant in other legal proceedings following the separation and distribution. In the opinion of management, based upon an investigation of these matters and discussion with legal counsel, the ultimate outcome of such other legal proceedings, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. As part of the separation and distribution, the Company assumed various financial obligations relating to the Coal Business and agreed to reimburse its former parent for certain financial guarantees relating to the Coal Business that its former parent retained following the separation and distribution. Employee-related financial guarantees have primarily been provided to support the United Mine Workers’ of America’s 1992 Benefit Plan and federal black lung and various state workers’ compensation self-insurance programs. Environmental financial guarantees have primarily been provided to support various performance bonds related to reclamation and other environmental issues. Other financial guarantees have been extended to support sales contracts, insurance policies, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business. The following is a summary, as of March 31, 2020 , of the financial guarantees, unconditional purchase obligations and letters of credit to certain third parties. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments, or under the separation and distribution agreement to the extent retained by the Company's former parent on behalf of the Coal 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 in the financial statements. The Company’s management believes that these guarantees will expire without being funded, and therefore, the commitments will not have a material adverse effect on the Company’s financial condition. Amount of Commitment Expiration per Period Total Amounts Committed Less Than 1 Year 1-3 Years 3-5 Years Beyond 5 Years Letters of Credit: Employee-Related $ 64,558 $ 35,806 $ 28,752 $ — $ — Environmental 398 398 — — — Other 45,843 40,682 5,161 — — Total Letters of Credit 110,799 76,886 33,913 — — Surety Bonds: Employee-Related 87,424 69,889 17,535 — — Environmental 527,406 496,365 31,041 — — Other 4,125 3,293 832 — — Total Surety Bonds 618,955 569,547 49,408 — — Guarantees: Other 14,654 7,348 6,576 398 332 Total Guarantees 14,654 7,348 6,576 398 332 Total Commitments $ 744,408 $ 653,781 $ 89,897 $ 398 $ 332 Included in the above table are commitments and guarantees entered into in conjunction with the sale of Consolidation Coal Company and certain of its subsidiaries, which contain all five of its longwall coal mines in West Virginia and its river operations, to a third party. As part of the separation and distribution, the Company's former parent agreed to indemnify the Company and the Company agreed to indemnify its former parent in each case with respect to guarantees of certain equipment lease obligations that were assumed by the third party. In the event that the third party would default on the obligations defined in the agreements, the Company would be required to perform under the guarantees. If the Company would be required to perform, the stock purchase agreement provides various recourse actions. As of March 31, 2020 , the Company has not been required to perform under these guarantees. The equipment lease obligations are collateralized by the underlying assets. The current maximum estimated exposure under these guarantees as of March 31, 2020 and December 31, 2019 is believed to be approximately $20,000 . At March 31, 2020 and December 31, 2019 , the fair value of these guarantees was $444 and $482 , respectively, and is included in Other Accrued Liabilities on the Consolidated Balance Sheets. The fair value of certain of the guarantees was determined using the Company’s risk-adjusted interest rate. Significant increases or decreases in the risk-adjusted interest rates may result in a significantly higher or lower fair value measurement. No other amounts related to financial guarantees and letters of credit are recorded as liabilities in the financial statements. Significant judgment is required in determining the fair value of these guarantees. The guarantees of the leases are classified within Level 3 of the fair value hierarchy. The Company regularly evaluates the likelihood of default for all guarantees based on an expected loss analysis and records the fair value, if any, of its guarantees as an obligation in the consolidated financial statements. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS: CONSOL Energy 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 Company’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 Company’s third-party guarantees are the credit risk of the third-party and the third-party surety bond markets. A significant increase or decrease in these values, in isolation, would have a directionally similar effect resulting in higher or lower fair value measurement of the Company’s Level 3 guarantees. 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 financial instruments measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Fair Value Measurements at March 31, 2020 December 31, 2019 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Lease Guarantees $ — $ — $ (444 ) $ — $ — $ (482 ) Derivatives (1) $ — $ (3,861 ) $ — $ — $ (154 ) $ — (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of 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: March 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-Term Debt $ 657,580 $ 447,291 $ 696,178 $ 642,018 Certain of the Company’s debt is actively traded on a public market and, as a result, constitutes Level 1 fair value measurements. The portion of the Company’s debt obligations that is not actively traded is valued through reference to the applicable underlying benchmark rate and, as a result, constitutes Level 2 fair value measurements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION: CONSOL Energy Inc. consists of one reportable segment: the Pennsylvania Mining Complex, which includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and the Central Preparation Plant. The principal activities of the PAMC are mining, preparation and marketing of thermal coal, sold primarily to power generators. It also includes selling, general and administrative activities, as well as various other activities assigned to the PAMC. CONSOL Energy’s Other division includes revenue and expenses from various corporate and diversified business activities that are not allocated to the PAMC division. The diversified business activities include the CONSOL Marine Terminal, development of the Itmann Mine, the Greenfield Reserves, closed and idle mine activities, selling, general and administrative activities, interest expense and income taxes, as well as various other non-operated activities, none of which are individually significant to the Company. Industry segment results for the three months ended March 31, 2020 are: PAMC Other Adjustments and Eliminations Consolidated Coal Revenue $ 255,452 $ — $ — $ 255,452 (A) Terminal Revenue — 16,501 — 16,501 Freight Revenue 3,147 — — 3,147 Total Revenue and Freight $ 258,599 $ 16,501 $ — $ 275,100 Earnings (Loss) Before Income Tax $ 10,875 $ (6,492 ) $ — $ 4,383 Segment Assets $ 1,949,655 $ 703,813 $ — $ 2,653,468 Depreciation, Depletion and Amortization $ 48,418 $ 6,525 $ — $ 54,943 Capital Expenditures $ 20,692 $ 6,486 $ — $ 27,178 Industry segment results for the three months ended March 31, 2019 are: PAMC Other Adjustments and Eliminations Consolidated Coal Revenue $ 332,502 $ — $ — $ 332,502 (A) Terminal Revenue — 17,818 — 17,818 Freight Revenue 6,662 — — 6,662 Total Revenue and Freight $ 339,164 $ 17,818 $ — $ 356,982 Earnings (Loss) Before Income Tax $ 64,698 $ (45,245 ) $ — $ 19,453 Segment Assets $ 1,992,549 $ 774,492 $ — $ 2,767,041 Depreciation, Depletion and Amortization $ 44,868 $ 5,856 $ — $ 50,724 Capital Expenditures $ 32,372 $ 1,799 $ — $ 34,171 (A) For the three months ended March 31, 2020 and 2019 , the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales: Three Months Ended March 31, 2020 2019 Customer A $ 38,908 $ 61,872 Customer B $ 104,354 $ 123,118 Customer C $ 35,683 $ 41,866 Reconciliation of Segment Information to Consolidated Amounts: Total Assets: March 31, 2020 2019 Segment Assets for Total Reportable Business Segments $ 1,949,655 $ 1,992,549 Segment Assets for All Other Business Segments 509,657 510,583 Items Excluded from Segment Assets: Cash and Other Investments 91,731 186,295 Deferred Tax Assets 102,425 77,614 Total Consolidated Assets $ 2,653,468 $ 2,767,041 |
ADDITIONAL INFORMATION WITH RES
ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES | ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES: Under the terms of the Indenture and Senior Secured Credit Facilities, CONSOL Energy has designated certain of its subsidiaries as “Unrestricted Subsidiaries”. The current Unrestricted Subsidiaries are the Partnership and its subsidiaries and the SPV. CONSOL Energy is required under the terms of the Indenture and the Senior Secured Credit Facilities to present additional information that reflects the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Company's Unrestricted Subsidiaries for the periods presented. This additional information is below. Income Statement for the Three Months Ended March 31, 2020 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated Revenue and Other Income: Coal Revenue $ 191,589 $ 63,863 $ 255,452 Terminal Revenue 16,501 — 16,501 Freight Revenue 2,360 787 3,147 Miscellaneous Other Income 3,863 12,307 16,170 Loss on Sale of Assets (14 ) — (14 ) Total Revenue and Other Income 214,299 76,957 291,256 Costs and Expenses: Operating and Other Costs 163,592 48,683 212,275 Depreciation, Depletion and Amortization 43,015 11,928 54,943 Freight Expense 2,360 787 3,147 Selling, General and Administrative Costs 13,624 4,046 17,670 Gain on Debt Extinguishment (16,833 ) — (16,833 ) Interest Expense, net 13,516 2,155 15,671 Total Costs and Expenses 219,274 67,599 286,873 (Loss) Earnings Before Income Tax (4,975 ) 9,358 4,383 Income Tax Expense 1,908 — 1,908 Net (Loss) Income (6,883 ) 9,358 2,475 Less: Net Income Attributable to Noncontrolling Interest 108 — 108 Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders $ (6,991 ) $ 9,358 $ 2,367 Balance Sheet at March 31, 2020 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated ASSETS Current Assets: Cash and Cash Equivalents $ 77,896 $ 270 $ 78,166 Restricted Cash — 661 661 Accounts and Notes Receivable Trade Receivables, net of Allowance — 113,098 113,098 Other Receivables, net of Allowance 31,654 2,224 33,878 Inventories 44,852 13,786 58,638 Prepaid Expenses and Other Assets 21,931 4,371 26,302 Total Current Assets 176,333 134,410 310,743 Property, Plant and Equipment: Property, Plant and Equipment 4,059,878 993,820 5,053,698 Less-Accumulated Depreciation, Depletion and Amortization 2,382,961 582,942 2,965,903 Property, Plant and Equipment - Net 1,676,917 410,878 2,087,795 Other Assets: Deferred Income Taxes 102,425 — 102,425 Right of Use Asset - Operating Leases 53,268 14,519 67,787 Other, net of Allowance 71,277 13,441 84,718 Total Other Assets 226,970 27,960 254,930 TOTAL ASSETS $ 2,080,220 $ 573,248 $ 2,653,468 LIABILITIES AND EQUITY Current Liabilities: Accounts Payable $ 65,078 $ 24,478 $ 89,556 Accounts (Recoverable) Payable - Related Parties (4,279 ) 4,279 — Current Portion of Long-Term Debt 58,529 8,912 67,441 Other Accrued Liabilities 197,677 39,584 237,261 Total Current Liabilities 317,005 77,253 394,258 Long-Term Debt: Long-Term Debt 452,472 152,455 604,927 Finance Lease Obligations 16,867 5,075 21,942 Total Long-Term Debt 469,339 157,530 626,869 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions 429,085 — 429,085 Pneumoconiosis Benefits 195,449 6,269 201,718 Asset Retirement Obligations 243,837 10,968 254,805 Workers' Compensation 57,313 3,648 60,961 Salary Retirement 44,439 — 44,439 Operating Lease Liability 42,039 10,936 52,975 Other 16,445 823 17,268 Total Deferred Credits and Other Liabilities 1,028,607 32,644 1,061,251 TOTAL LIABILITIES 1,814,951 267,427 2,082,378 Total CONSOL Energy Inc. Stockholders’ Equity 133,584 305,821 439,405 Noncontrolling Interest 131,685 — 131,685 TOTAL LIABILITIES AND EQUITY $ 2,080,220 $ 573,248 $ 2,653,468 Income Statement for the Three Months Ended March 31, 2019 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated Revenue and Other Income: Coal Revenue $ 249,376 $ 83,126 $ 332,502 Terminal Revenue 17,818 — 17,818 Freight Revenue 4,997 1,665 6,662 Miscellaneous Other Income 11,981 1,311 13,292 Gain on Sale of Assets 334 5 339 Total Revenue and Other Income 284,506 86,107 370,613 Costs and Expenses: Operating and Other Costs 177,603 52,509 230,112 Depreciation, Depletion and Amortization 39,507 11,217 50,724 Freight Expense 4,997 1,665 6,662 Selling, General and Administrative Costs 17,363 4,560 21,923 Loss on Debt Extinguishment 23,143 — 23,143 Interest Expense, net 17,245 1,351 18,596 Total Costs and Expenses 279,858 71,302 351,160 Earnings Before Income Tax 4,648 14,805 19,453 Income Tax Benefit (850 ) — (850 ) Net Income 5,498 14,805 20,303 Less: Net Income Attributable to Noncontrolling Interest 5,868 — 5,868 Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders $ (370 ) $ 14,805 $ 14,435 Balance Sheet at December 31, 2019: Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated ASSETS Current Assets: Cash and Cash Equivalents $ 79,717 $ 576 $ 80,293 Accounts and Notes Receivable Trade Receivables, net of Allowance — 131,688 131,688 Other Receivables, net of Allowance 39,412 1,572 40,984 Inventories 41,478 12,653 54,131 Prepaid Expenses and Other Assets 25,181 5,752 30,933 Total Current Assets 185,788 152,241 338,029 Property, Plant and Equipment: Property, Plant and Equipment 4,023,282 984,898 5,008,180 Less-Accumulated Depreciation, Depletion and Amortization 2,344,777 571,238 2,916,015 Property, Plant and Equipment - Net 1,678,505 413,660 2,092,165 Other Assets: Deferred Income Taxes 103,505 — 103,505 Right of Use Asset - Operating Leases 56,937 15,695 72,632 Other, net of Allowance 74,015 13,456 87,471 Total Other Assets 234,457 29,151 263,608 TOTAL ASSETS $ 2,098,750 $ 595,052 $ 2,693,802 LIABILITIES AND EQUITY Current Liabilities: Accounts Payable $ 79,140 $ 27,083 $ 106,223 Accounts (Recoverable) Payable - Related Parties (1,419 ) 1,419 — Current Portion of Long-Term Debt 45,020 5,252 50,272 Other Accrued Liabilities 196,314 39,455 235,769 Total Current Liabilities 319,055 73,209 392,264 Long-Term Debt: Long-Term Debt 505,646 148,156 653,802 Finance Lease Obligations 7,391 1,645 9,036 Total Long-Term Debt 513,037 149,801 662,838 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions 432,496 — 432,496 Pneumoconiosis Benefits 196,114 6,028 202,142 Asset Retirement Obligations 239,410 10,801 250,211 Workers' Compensation 57,583 3,611 61,194 Salary Retirement 49,930 — 49,930 Operating Lease Liability 43,906 11,507 55,413 Other 14,134 785 14,919 Total Deferred Credits and Other Liabilities 1,033,573 32,732 1,066,305 TOTAL LIABILITIES 1,865,665 255,742 2,121,407 Total CONSOL Energy Inc. Stockholders’ Equity 95,889 339,310 435,199 Noncontrolling Interest 137,196 — 137,196 TOTAL LIABILITIES AND EQUITY $ 2,098,750 $ 595,052 $ 2,693,802 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS: Transactions with the Company's Former Parent (2017) Transition Services Agreements The Company entered into a transition services agreement (“TSA”) and certain other agreements in connection with the separation and distribution agreement with its former parent to cover certain continued corporate services provided by the Company and its former parent to each other following the completion of the separation and distribution. In connection with the separation and distribution, the Company began to set up its own corporate functions, and pursuant to the TSA, the Company's former parent provided various corporate support services, including certain accounting, human resources, information technology, office and building, risk, security, tax and treasury, building security and tax services, as well as certain regulatory compliance services required during the period in which the Company remained a majority-owned subsidiary of its former parent. The TSA expired in February 2019. The charges associated with these services were not material during the three months ended March 31, 2019 , and were consistent with expenses that the Company's former parent had historically allocated or incurred with respect to such services. Former Parent Receivables and Payables The Company had a receivable from its former parent of $6,791 at December 31, 2019 , which was recorded in Other Receivables on the Consolidated Balance Sheets. The balance of this receivable was collected during the three months ended March 31, 2020 . This receivable relates to reimbursements per the terms of the separation and distribution agreement. CONSOL Coal Resources LP CONSOL Energy, certain of its subsidiaries and the Partnership are party to an Omnibus Agreement, dated September 30, 2016, as amended on November 28, 2017 (the “Omnibus Agreement”). Under the Omnibus Agreement, CONSOL Energy provides the Partnership with certain services in exchange for payments by the Partnership for those services. On November 28, 2017, the Company entered into an Affiliated Company Credit Agreement with the Partnership and certain of its subsidiaries (the Partnership Credit Parties) as amended on March 28, 2019 (as amended, the “Affiliated Company Credit Agreement”) under which the Company provides as lender a revolving credit facility in an aggregate principal amount of up to $275 million to the Partnership Credit Parties. In connection with the completion of the separation, the Partnership drew an initial $201 million , the net proceeds of which were used to repay outstanding amounts under CCR's $400 million senior secured revolving credit facility with certain lenders and PNC Bank, National Association, as administrative agent (the “Original CCR Credit Facility”), and to provide working capital for the Partnership following the separation and for other general corporate purposes. The Original CCR Credit Facility was then terminated. On March 28, 2019, the Affiliated Company Credit Agreement was amended to extend the maturity date from February 27, 2023 to December 28, 2024. Interest accrues at a rate ranging from 3.75% to 4.75% , subject to the Partnership's net leverage ratio. For the three months ended March 31, 2020 and 2019 , $2,114 and $1,796 of interest was incurred under the Affiliated Company Credit Agreement, respectively. The collateral obligations under the Affiliated Company Credit Agreement generally mirror the Original CCR Credit Facility, as does the list of entities that will act as guarantors thereunder. The Affiliated Company Credit Agreement is subject to financial covenants relating to a maximum first lien gross leverage ratio and a maximum total net leverage ratio, which will be calculated on a consolidated basis for the Partnership and its restricted subsidiaries at the end of each fiscal quarter. The Partnership was in compliance with each of these financial covenants at March 31, 2020 . The Affiliated Company Credit Agreement also contains a number of customary affirmative covenants and negative covenants, including limitations on the ability of the Partnership to incur additional indebtedness, grant liens, and make investments, acquisitions, dispositions, restricted payments, and prepayments of junior indebtedness (subject to certain limited exceptions). CCR is a party to a number of other agreements with CONSOL Energy, or its subsidiaries, that are described in detail in the section titled “Agreements with Affiliates” in Item 13 of CCR’s Form 10-K filed on February 14, 2020. In August 2019, upon payment of the cash distribution with respect to the quarter ended June 30, 2019, the financial requirements for the conversion of all CCR subordinated units were satisfied. As a result, all 11,611,067 of the CCR subordinated units owned entirely by CONSOL Energy Inc. were converted into CCR common units on a one -for-one basis. The conversion did not impact the amount of the cash distribution paid or the total number of CCR's outstanding units representing limited partner interests. Charges for services from the Company to CCR include the following: For the Three Months Ended March 31, 2020 2019 Operating and Other Costs $ 853 $ 763 Selling, General and Administrative Costs 2,793 3,056 Total Services from CONSOL Energy $ 3,646 $ 3,819 Operating and Other Costs include pension service costs and insurance expenses. Selling, General and Administrative Costs include charges for incentive compensation, an annual administrative support fee and reimbursement for the provision of certain management and operating services provided by the Company. At March 31, 2020 and December 31, 2019 , CCR had a net payable to the Company in the amount of $ 4,279 and $ 1,419 , respectively. This payable includes reimbursements for business expenses, executive fees, stock-based compensation and other items under the Omnibus Agreement. In May 2019, CONSOL Energy Inc.'s Board of Directors approved an expansion of the stock, unit and debt repurchase program (see Note 18 - Stock, Unit and Debt Repurchases). The program expansion allows the Company to use up to $50 million of the program to purchase CCR's outstanding common units in the open market. None of the Partnership's common units were purchased under this program during the three months ended March 31, 2020 and 2019 . |
STOCK, UNIT AND DEBT REPURCHASE
STOCK, UNIT AND DEBT REPURCHASES | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STOCK, UNIT AND DEBT REPURCHASES | STOCK, UNIT AND DEBT REPURCHASES: In December 2017, CONSOL Energy’s Board of Directors approved a program to repurchase, from time to time, the Company’s outstanding shares of common stock or its 11.00% Senior Secured Second Lien Notes due 2025, in an aggregate amount of up to $50 million through the period ending June 30, 2019. The program was subsequently amended by CONSOL Energy’s Board of Directors in July 2018 to allow up to $100 million of repurchases of the Company’s common stock or its 11.00% Senior Secured Second Lien Notes due 2025, subject to certain limitations in the Company’s current credit agreement and the TMA. The Company’s Board of Directors also authorized the Company to use up to $25 million of the program to purchase CONSOL Coal Resources LP’s outstanding common units in the open market. In May 2019, CONSOL Energy's Board of Directors approved an expansion of the program in the amount of $75 million , bringing the aggregate limit of the program to $175 million . The May 2019 expansion also increased the aggregate limit of the amount of CCR's common units that can be purchased under the program to $50 million , which is consistent with the Company's credit facility covenants that prohibit the Company from using more than $50 million for the purchase of CCR's outstanding common units. The Company's Board of Directors also approved extending the termination date of the program from June 30, 2019 to June 30, 2020. In July 2019, CONSOL Energy's Board of Directors approved an expansion of the program in the amount of $25 million , bringing the aggregate limit of the Company's stock, unit and debt repurchase program to $200 million . Under the terms of the program, CONSOL Energy is permitted to make repurchases in the open market, in privately negotiated transactions, accelerated repurchase programs or in structured share repurchase programs. CONSOL Energy is also authorized to enter into one or more 10b5-1 plans with respect to any of the repurchases. Any repurchases of common stock, notes or units are to be funded from available cash on hand or short-term borrowings. The program does not obligate CONSOL Energy to acquire any particular amount of its common stock, notes or units, and can be modified or suspended at any time at the Company’s discretion. The program is conducted in compliance with applicable legal requirements and within the limits imposed by any credit agreement, receivables purchase agreement, indenture, or the TMA, and is subject to market conditions and other factors. During the three months ended March 31, 2020 and 2019 , the Company repurchased approximately $43,176 and $7,000 of its 11.00% Senior Secured Second Lien Notes due 2025, respectively. No common shares were repurchased and no common Partnership units were purchased under this program during the three months ended March 31, 2020 and 2019 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: On April 23, 2020, the Board of Directors of CCR's general partner made the decision to temporarily suspend the quarterly cash distributions to all of CCR's unitholders due to the ongoing uncertainty in the commodity markets driven by the COVID-19 pandemic-related demand decline. On May 8, 2020, CONSOL Energy Inc.'s Board of Directors approved an expansion of the stock, unit and debt repurchase program. The aggregate amount of the program's expansion is $70 million , bringing the total amount of the Company's stock, unit and debt repurchase program to $270 million . The Company's Board of Directors also approved extending the termination date of the program, from June 30, 2020 to June 30, 2022. The program's available capacity as of May 11, 2020 is $100,622 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2019 has been derived from the Audited Consolidated Financial Statements at that date but does not include all disclosures required by GAAP. This Form 10-Q report should be read in conjunction with CONSOL Energy Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Basis of Consolidation | Basis of Consolidation The Consolidated Financial Statements include the accounts of CONSOL Energy Inc. and its wholly-owned and majority-owned and/or controlled subsidiaries. The portion of these entities that is not owned by the Company is presented as non-controlling interest. All significant intercompany transactions and accounts have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This Update also provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Management has elected to apply this Update subsequent to March 12, 2020. Management is currently evaluating the impact of this guidance, but does not expect this update to have a material impact on the Company's financial statements. In January 2020, the FASB issued ASU 2020-01 - Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this Update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Management does not expect this update to have a material impact on the Company's financial statements. In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740) to reduce the complexity of accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in Update 2019-12 will remove the following exceptions: (1) the exception to the incremental approach for intra-period tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in Update 2019-12 will also simplify the accounting for income taxes in the areas of franchise tax, step up in the tax basis of goodwill associated with a business combination, allocation of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements, and presentation of the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Update adds minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. These changes will be effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Management does not expect this update to have a material impact on the Company's financial statements. In August 2018, the FASB issued ASU 2018-15 - Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments in Update 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements of capitalizing implementation costs incurred to develop or obtain internal-use software. These changes are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. CONSOL Energy adopted this guidance during the three months ended March 31, 2020 , and there was no material impact on the Company's financial statements. In August 2018, the FASB issued ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These changes will be effective for fiscal years ending after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact this guidance may have on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13 - Fair Value Measurement (Topic 820) to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP. The amendments modify the disclosure requirements on fair value measurements including the consideration of costs and benefits. These changes are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. CONSOL Energy adopted this guidance during the three months ended March 31, 2020 , and there was no material impact on the Company's financial statements. |
Earnings per Share | Earnings per Share Basic earnings per share are computed by dividing net income attributable to CONSOL Energy Inc. shareholders by the weighted average shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include additional shares from restricted stock units and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. |
Revenue Recognition | CONSOL Energy's coal revenue is generally recognized when title passes to the customer and the price is fixed and determinable. The Company has determined that each ton of coal represents a separate and distinct performance obligation. The Company's coal supply contracts and other sales and operating revenue contracts vary in length from short-term to long-term contracts and do not typically have significant financing components. The estimated transaction price from each of the Company's contracts is based on the total amount of consideration to which the Company expects to be entitled under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. The estimated transaction price for each contract is allocated to the Company's performance obligations based on relative stand-alone selling prices determined at contract inception. Coal Revenue Revenues are generally recognized when title passes to the customers and the price is fixed and determinable. Generally, title passes when coal is loaded at the central preparation facility and, on occasion, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed and determinable and adjusted for nominal quality adjustments. Some coal contracts also contain positive electric power price-related adjustments, which represent market-driven price adjustments, wherein no additional value is exchanged, in addition to a fixed base price per ton. The Company’s coal contracts generally do not allow for retroactive adjustments to pricing after title to the coal has passed. Some of the Company's contracts span multiple years and have annual pricing modifications, based upon market-driven or inflationary adjustments, where no additional value is exchanged. Management believes that the invoice price is the most appropriate rate at which to recognize revenue. While CONSOL Energy does, from time to time, experience costs of obtaining coal customer contracts with amortization periods greater than one year, those costs are generally immaterial to the Company's net income. At March 31, 2020 and December 31, 2019 , the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2020 and 2019 , the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Terminal Revenue Terminal revenues are attributable to the Company's CONSOL Marine Terminal and include revenues earned from providing receipt and unloading of coal from rail cars, transporting coal from the receipt point to temporary storage or stockpile facilities located at the Terminal, stockpiling, blending, weighing, sampling, redelivery, and loading of coal onto vessels. Revenues for these services are generally earned on a rateable basis, and performance obligations are considered fulfilled as the services are performed. The CONSOL Marine Terminal does not normally experience material costs of obtaining customer contracts with amortization periods greater than one year. At March 31, 2020 and December 31, 2019 , the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2020 and 2019 , the Company has not recognized any amortization of previously existing capitalized costs of obtaining Terminal customer contracts. Further, the Company has not recognized any revenue in the current period that is not a result of current period performance. Freight Revenue Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its central preparation plant. The cost to transport the Company's coal to the ultimate sales point is passed through to the Company's customers and CONSOL Energy recognizes the freight revenue equal to the transportation costs when title of the coal passes to the customer. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities | The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be anti-dilutive: For the Three Months Ended March 31, 2020 2019 Anti-Dilutive Restricted Stock Units 141,279 — Anti-Dilutive Performance Share Units — 8,086 141,279 8,086 |
Schedule of Basic and Dilutive Earnings Per Share | The computations for basic and dilutive earnings per share are as follows: For the Three Months Ended Dollars in thousands, except per share data March 31, 2020 2019 Numerator: Net Income $ 2,475 $ 20,303 Less: Net Income Attributable to Noncontrolling Interest 108 5,868 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 2,367 $ 14,435 Denominator: Weighted-average shares of common stock outstanding 25,987,155 27,530,859 Effect of dilutive shares 265,056 308,534 Weighted-average diluted shares of common stock outstanding 26,252,211 27,839,393 Earnings per Share: Basic $ 0.09 $ 0.52 Dilutive $ 0.09 $ 0.52 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Major Source | The following table disaggregates CONSOL Energy's revenue from contracts with customers to depict how the nature, amount, timing and uncertainty of the Company's revenues and cash flows are affected by economic factors: Three Months Ended March 31, 2020 March 31, 2019 Coal Revenue $ 255,452 $ 332,502 Terminal Revenue 16,501 17,818 Freight Revenue 3,147 6,662 Total Revenue from Contracts with Customers $ 275,100 $ 356,982 |
MISCELLANEOUS OTHER INCOME (Tab
MISCELLANEOUS OTHER INCOME (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Miscellaneous Other Income | For the Three Months Ended March 31, 2020 2019 Contract Buyout $ 10,825 $ 1,048 Royalty Income - Non-Operated Coal 4,504 6,210 Rental Income 497 617 Interest Income 244 887 Property Easements and Option Income 63 979 Purchased Coal Sales — 3,186 Other 37 365 Miscellaneous Other Income $ 16,170 $ 13,292 |
COMPONENTS OF PENSION AND OTH_2
COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit (Credit) Cost | The components of Net Periodic Benefit (Credit) Cost are as follows: Pension Benefits Other Post-Employment Benefits Three Months Ended Three Months Ended 2020 2019 2020 2019 Service Cost $ 296 $ 987 $ — $ — Interest Cost 5,044 6,275 3,199 4,580 Expected Return on Plan Assets (10,455 ) (10,114 ) — — Amortization of Prior Service Credits — (92 ) (601 ) (601 ) Amortization of Actuarial Loss 1,730 1,490 2,319 2,315 Net Periodic Benefit (Credit) Cost $ (3,385 ) $ (1,454 ) $ 4,917 $ 6,294 |
COMPONENTS OF COAL WORKERS_ P_2
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of Net Periodic Benefit Cost are as follows: CWP Workers' Compensation Three Months Ended Three Months Ended 2020 2019 2020 2019 Service Cost $ 1,151 $ 948 $ 1,569 $ 1,421 Interest Cost 1,551 1,750 461 646 Amortization of Actuarial Loss (Gain) 1,401 254 (122 ) (193 ) State Administrative Fees and Insurance Bond Premiums — — 621 587 Net Periodic Benefit Cost $ 4,103 $ 2,952 $ 2,529 $ 2,461 |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Changes in Accounting Principles | The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption Trade Receivables $ 3,051 $ 2,100 $ 951 Other Receivables 3,372 711 2,661 Other Assets 795 — 795 Allowance for Credit Losses on Receivables $ 7,218 $ 2,811 $ 4,407 |
Schedule of Allowance for Credit Losses | The following table provides a roll-forward of the allowance for credit losses by portfolio segment that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. Trade Receivables Other Receivables Other Assets Beginning Balance, January 1, 2020 $ 2,100 $ 711 $ — Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings 951 2,661 795 Provision for expected credit losses (643 ) 1,242 35 Ending Balance, March 31, 2020 $ 2,408 $ 4,614 $ 830 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory components consist of the following: March 31, December 31, Coal $ 4,621 $ 2,484 Supplies 54,017 51,647 Total Inventories $ 58,638 $ 54,131 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following: March 31, December 31, Plant and Equipment $ 3,066,656 $ 3,028,514 Coal Properties and Surface Lands 873,597 872,909 Airshafts 443,600 437,003 Mine Development 342,707 342,706 Advance Mining Royalties 327,138 327,048 Total Property, Plant and Equipment 5,053,698 5,008,180 Less: Accumulated Depreciation, Depletion and Amortization 2,965,903 2,916,015 Total Property, Plant and Equipment, Net $ 2,087,795 $ 2,092,165 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | March 31, December 31, 2019 Subsidence Liability $ 96,022 $ 90,645 Accrued Payroll and Benefits 15,674 21,102 Accrued Interest 9,280 6,281 Accrued Other Taxes 5,407 4,753 Litigation 2,685 2,565 Short-Term Incentive Compensation 1,456 3,997 Other 12,139 9,719 Current Portion of Long-Term Liabilities: Postretirement Benefits Other than Pensions 31,359 31,833 Asset Retirement Obligations 21,741 21,741 Operating Lease Liability 18,249 19,479 Pneumoconiosis Benefits 12,251 12,331 Workers' Compensation 10,998 11,323 Total Other Accrued Liabilities $ 237,261 $ 235,769 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | March 31, December 31, Debt: Term Loan B due in September 2024 (Principal of $272,250 and $272,938 less Unamortized Discount of $1,125 and $1,187, 5.49% and 6.30% Weighted Average Interest Rate, respectively) $ 271,125 $ 271,751 11.00% Senior Secured Second Lien Notes due November 2025 178,452 221,628 MEDCO Revenue Bonds in Series due September 2025 at 5.75% 102,865 102,865 Term Loan A due in March 2023 (4.74% and 5.55% Weighted Average Interest Rate, respectively) 85,000 88,750 Other Asset-Backed Financing Arrangements 18,243 9,289 Advance Royalty Commitments (10.78% Weighted Average Interest Rate) 1,895 1,895 Less: Unamortized Debt Issuance Costs 8,966 10,323 648,614 685,855 Less: Amounts Due in One Year* 43,687 32,053 Long-Term Debt $ 604,927 $ 653,802 * Excludes current portion of Finance Lease Obligations of $23,754 and $18,219 at March 31, 2020 and December 31, 2019 , respectively. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitment Expiration | The Company’s management believes that these guarantees will expire without being funded, and therefore, the commitments will not have a material adverse effect on the Company’s financial condition. Amount of Commitment Expiration per Period Total Amounts Committed Less Than 1 Year 1-3 Years 3-5 Years Beyond 5 Years Letters of Credit: Employee-Related $ 64,558 $ 35,806 $ 28,752 $ — $ — Environmental 398 398 — — — Other 45,843 40,682 5,161 — — Total Letters of Credit 110,799 76,886 33,913 — — Surety Bonds: Employee-Related 87,424 69,889 17,535 — — Environmental 527,406 496,365 31,041 — — Other 4,125 3,293 832 — — Total Surety Bonds 618,955 569,547 49,408 — — Guarantees: Other 14,654 7,348 6,576 398 332 Total Guarantees 14,654 7,348 6,576 398 332 Total Commitments $ 744,408 $ 653,781 $ 89,897 $ 398 $ 332 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | The financial instruments measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Fair Value Measurements at March 31, 2020 December 31, 2019 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Lease Guarantees $ — $ — $ (444 ) $ — $ — $ (482 ) Derivatives (1) $ — $ (3,861 ) $ — $ — $ (154 ) $ — (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
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: March 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-Term Debt $ 657,580 $ 447,291 $ 696,178 $ 642,018 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Industry Segment Results | Industry segment results for the three months ended March 31, 2020 are: PAMC Other Adjustments and Eliminations Consolidated Coal Revenue $ 255,452 $ — $ — $ 255,452 (A) Terminal Revenue — 16,501 — 16,501 Freight Revenue 3,147 — — 3,147 Total Revenue and Freight $ 258,599 $ 16,501 $ — $ 275,100 Earnings (Loss) Before Income Tax $ 10,875 $ (6,492 ) $ — $ 4,383 Segment Assets $ 1,949,655 $ 703,813 $ — $ 2,653,468 Depreciation, Depletion and Amortization $ 48,418 $ 6,525 $ — $ 54,943 Capital Expenditures $ 20,692 $ 6,486 $ — $ 27,178 Industry segment results for the three months ended March 31, 2019 are: PAMC Other Adjustments and Eliminations Consolidated Coal Revenue $ 332,502 $ — $ — $ 332,502 (A) Terminal Revenue — 17,818 — 17,818 Freight Revenue 6,662 — — 6,662 Total Revenue and Freight $ 339,164 $ 17,818 $ — $ 356,982 Earnings (Loss) Before Income Tax $ 64,698 $ (45,245 ) $ — $ 19,453 Segment Assets $ 1,992,549 $ 774,492 $ — $ 2,767,041 Depreciation, Depletion and Amortization $ 44,868 $ 5,856 $ — $ 50,724 Capital Expenditures $ 32,372 $ 1,799 $ — $ 34,171 (A) For the three months ended March 31, 2020 and 2019 , the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales: Three Months Ended March 31, 2020 2019 Customer A $ 38,908 $ 61,872 Customer B $ 104,354 $ 123,118 Customer C $ 35,683 $ 41,866 |
Schedule of Segment Revenues from Major Customers | For the three months ended March 31, 2020 and 2019 , the PAMC segment had revenues from the following customers, each comprising over 10% of the Company’s total sales: Three Months Ended March 31, 2020 2019 Customer A $ 38,908 $ 61,872 Customer B $ 104,354 $ 123,118 Customer C $ 35,683 $ 41,866 |
Schedule of Total Assets | Total Assets: March 31, 2020 2019 Segment Assets for Total Reportable Business Segments $ 1,949,655 $ 1,992,549 Segment Assets for All Other Business Segments 509,657 510,583 Items Excluded from Segment Assets: Cash and Other Investments 91,731 186,295 Deferred Tax Assets 102,425 77,614 Total Consolidated Assets $ 2,653,468 $ 2,767,041 |
ADDITIONAL INFORMATION WITH R_2
ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Income Statement | Income Statement for the Three Months Ended March 31, 2019 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated Revenue and Other Income: Coal Revenue $ 249,376 $ 83,126 $ 332,502 Terminal Revenue 17,818 — 17,818 Freight Revenue 4,997 1,665 6,662 Miscellaneous Other Income 11,981 1,311 13,292 Gain on Sale of Assets 334 5 339 Total Revenue and Other Income 284,506 86,107 370,613 Costs and Expenses: Operating and Other Costs 177,603 52,509 230,112 Depreciation, Depletion and Amortization 39,507 11,217 50,724 Freight Expense 4,997 1,665 6,662 Selling, General and Administrative Costs 17,363 4,560 21,923 Loss on Debt Extinguishment 23,143 — 23,143 Interest Expense, net 17,245 1,351 18,596 Total Costs and Expenses 279,858 71,302 351,160 Earnings Before Income Tax 4,648 14,805 19,453 Income Tax Benefit (850 ) — (850 ) Net Income 5,498 14,805 20,303 Less: Net Income Attributable to Noncontrolling Interest 5,868 — 5,868 Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders $ (370 ) $ 14,805 $ 14,435 Income Statement for the Three Months Ended March 31, 2020 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated Revenue and Other Income: Coal Revenue $ 191,589 $ 63,863 $ 255,452 Terminal Revenue 16,501 — 16,501 Freight Revenue 2,360 787 3,147 Miscellaneous Other Income 3,863 12,307 16,170 Loss on Sale of Assets (14 ) — (14 ) Total Revenue and Other Income 214,299 76,957 291,256 Costs and Expenses: Operating and Other Costs 163,592 48,683 212,275 Depreciation, Depletion and Amortization 43,015 11,928 54,943 Freight Expense 2,360 787 3,147 Selling, General and Administrative Costs 13,624 4,046 17,670 Gain on Debt Extinguishment (16,833 ) — (16,833 ) Interest Expense, net 13,516 2,155 15,671 Total Costs and Expenses 219,274 67,599 286,873 (Loss) Earnings Before Income Tax (4,975 ) 9,358 4,383 Income Tax Expense 1,908 — 1,908 Net (Loss) Income (6,883 ) 9,358 2,475 Less: Net Income Attributable to Noncontrolling Interest 108 — 108 Net (Loss) Income Attributable to CONSOL Energy Inc. Shareholders $ (6,991 ) $ 9,358 $ 2,367 |
Balance Sheet | Balance Sheet at March 31, 2020 (unaudited): Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated ASSETS Current Assets: Cash and Cash Equivalents $ 77,896 $ 270 $ 78,166 Restricted Cash — 661 661 Accounts and Notes Receivable Trade Receivables, net of Allowance — 113,098 113,098 Other Receivables, net of Allowance 31,654 2,224 33,878 Inventories 44,852 13,786 58,638 Prepaid Expenses and Other Assets 21,931 4,371 26,302 Total Current Assets 176,333 134,410 310,743 Property, Plant and Equipment: Property, Plant and Equipment 4,059,878 993,820 5,053,698 Less-Accumulated Depreciation, Depletion and Amortization 2,382,961 582,942 2,965,903 Property, Plant and Equipment - Net 1,676,917 410,878 2,087,795 Other Assets: Deferred Income Taxes 102,425 — 102,425 Right of Use Asset - Operating Leases 53,268 14,519 67,787 Other, net of Allowance 71,277 13,441 84,718 Total Other Assets 226,970 27,960 254,930 TOTAL ASSETS $ 2,080,220 $ 573,248 $ 2,653,468 LIABILITIES AND EQUITY Current Liabilities: Accounts Payable $ 65,078 $ 24,478 $ 89,556 Accounts (Recoverable) Payable - Related Parties (4,279 ) 4,279 — Current Portion of Long-Term Debt 58,529 8,912 67,441 Other Accrued Liabilities 197,677 39,584 237,261 Total Current Liabilities 317,005 77,253 394,258 Long-Term Debt: Long-Term Debt 452,472 152,455 604,927 Finance Lease Obligations 16,867 5,075 21,942 Total Long-Term Debt 469,339 157,530 626,869 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions 429,085 — 429,085 Pneumoconiosis Benefits 195,449 6,269 201,718 Asset Retirement Obligations 243,837 10,968 254,805 Workers' Compensation 57,313 3,648 60,961 Salary Retirement 44,439 — 44,439 Operating Lease Liability 42,039 10,936 52,975 Other 16,445 823 17,268 Total Deferred Credits and Other Liabilities 1,028,607 32,644 1,061,251 TOTAL LIABILITIES 1,814,951 267,427 2,082,378 Total CONSOL Energy Inc. Stockholders’ Equity 133,584 305,821 439,405 Noncontrolling Interest 131,685 — 131,685 TOTAL LIABILITIES AND EQUITY $ 2,080,220 $ 573,248 $ 2,653,468 Balance Sheet at December 31, 2019: Company and Restricted Subsidiaries Unrestricted Subsidiaries Consolidated ASSETS Current Assets: Cash and Cash Equivalents $ 79,717 $ 576 $ 80,293 Accounts and Notes Receivable Trade Receivables, net of Allowance — 131,688 131,688 Other Receivables, net of Allowance 39,412 1,572 40,984 Inventories 41,478 12,653 54,131 Prepaid Expenses and Other Assets 25,181 5,752 30,933 Total Current Assets 185,788 152,241 338,029 Property, Plant and Equipment: Property, Plant and Equipment 4,023,282 984,898 5,008,180 Less-Accumulated Depreciation, Depletion and Amortization 2,344,777 571,238 2,916,015 Property, Plant and Equipment - Net 1,678,505 413,660 2,092,165 Other Assets: Deferred Income Taxes 103,505 — 103,505 Right of Use Asset - Operating Leases 56,937 15,695 72,632 Other, net of Allowance 74,015 13,456 87,471 Total Other Assets 234,457 29,151 263,608 TOTAL ASSETS $ 2,098,750 $ 595,052 $ 2,693,802 LIABILITIES AND EQUITY Current Liabilities: Accounts Payable $ 79,140 $ 27,083 $ 106,223 Accounts (Recoverable) Payable - Related Parties (1,419 ) 1,419 — Current Portion of Long-Term Debt 45,020 5,252 50,272 Other Accrued Liabilities 196,314 39,455 235,769 Total Current Liabilities 319,055 73,209 392,264 Long-Term Debt: Long-Term Debt 505,646 148,156 653,802 Finance Lease Obligations 7,391 1,645 9,036 Total Long-Term Debt 513,037 149,801 662,838 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions 432,496 — 432,496 Pneumoconiosis Benefits 196,114 6,028 202,142 Asset Retirement Obligations 239,410 10,801 250,211 Workers' Compensation 57,583 3,611 61,194 Salary Retirement 49,930 — 49,930 Operating Lease Liability 43,906 11,507 55,413 Other 14,134 785 14,919 Total Deferred Credits and Other Liabilities 1,033,573 32,732 1,066,305 TOTAL LIABILITIES 1,865,665 255,742 2,121,407 Total CONSOL Energy Inc. Stockholders’ Equity 95,889 339,310 435,199 Noncontrolling Interest 137,196 — 137,196 TOTAL LIABILITIES AND EQUITY $ 2,098,750 $ 595,052 $ 2,693,802 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Charges for services from the Company to CCR include the following: For the Three Months Ended March 31, 2020 2019 Operating and Other Costs $ 853 $ 763 Selling, General and Administrative Costs 2,793 3,056 Total Services from CONSOL Energy $ 3,646 $ 3,819 |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) | Mar. 31, 2020shares |
Accounting Policies [Abstract] | |
Preferred stock, shares authorized | 500,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 141,279 | 8,086 |
Anti-Dilutive Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 141,279 | 0 |
Anti-Dilutive Performance Share Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of earnings per share (in shares) | 0 | 8,086 |
BASIS OF PRESENTATION - Sched_2
BASIS OF PRESENTATION - Schedule of Basic and Dilutive Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net Income | $ 2,475 | $ 20,303 |
Less: Net Income Attributable to Noncontrolling Interest | 108 | 5,868 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | $ 2,367 | $ 14,435 |
Denominator: | ||
Weighted-average shares of common stock outstanding | 25,987,155 | 27,530,859 |
Effect of dilutive shares | 265,056 | 308,534 |
Weighted-average diluted shares of common stock outstanding | 26,252,211 | 27,839,393 |
Earnings per Share: | ||
Basic (in dollars per share) | $ 0.09 | $ 0.52 |
Dilutive (in dollars per share) | $ 0.09 | $ 0.52 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | $ 275,100 | $ 356,982 |
Coal Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | 255,452 | 332,502 |
Terminal Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | 16,501 | 17,818 |
Freight Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | $ 3,147 | $ 6,662 |
MISCELLANEOUS OTHER INCOME (Det
MISCELLANEOUS OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Contract Buyout | $ 10,825 | $ 1,048 |
Royalty Income - Non-Operated Coal | 4,504 | 6,210 |
Rental Income | 497 | 617 |
Interest Income | 244 | 887 |
Property Easements and Option Income | 63 | 979 |
Purchased Coal Sales | 0 | 3,186 |
Other | 37 | 365 |
Miscellaneous Other Income | $ 16,170 | $ 13,292 |
COMPONENTS OF PENSION AND OTH_3
COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS - Schedule of Components of Net Periodic Benefit (Credit) Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 296 | $ 987 |
Interest Cost | 5,044 | 6,275 |
Expected Return on Plan Assets | (10,455) | (10,114) |
Amortization of Prior Service Credits | 0 | (92) |
Amortization of Actuarial Loss | 1,730 | 1,490 |
Net Periodic Benefit (Credit) Cost | (3,385) | (1,454) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 0 | 0 |
Interest Cost | 3,199 | 4,580 |
Expected Return on Plan Assets | 0 | 0 |
Amortization of Prior Service Credits | (601) | (601) |
Amortization of Actuarial Loss | 2,319 | 2,315 |
Net Periodic Benefit (Credit) Cost | $ 4,917 | $ 6,294 |
COMPONENTS OF COAL WORKERS_ P_3
COMPONENTS OF COAL WORKERS’ PNEUMOCONIOSIS (CWP) AND WORKERS’ COMPENSATION NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CWP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | $ 1,151 | $ 948 |
Interest Cost | 1,551 | 1,750 |
Amortization of Actuarial Loss (Gain) | 1,401 | 254 |
State Administrative Fees and Insurance Bond Premiums | 0 | 0 |
Net Periodic Benefit (Credit) Cost | 4,103 | 2,952 |
Workers' Compensation | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | 1,569 | 1,421 |
Interest Cost | 461 | 646 |
Amortization of Actuarial Loss (Gain) | (122) | (193) |
State Administrative Fees and Insurance Bond Premiums | 621 | 587 |
Net Periodic Benefit (Credit) Cost | $ 2,529 | $ 2,461 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 44.60% | (4.40%) |
Tax benefit from operations | 3.10% | 2.50% |
Tax expense from equity compensation | $ 902 | |
Tax expense from CARES Act | $ 1,139 | |
Tax benefit from equity compensation | 1.90% |
CREDIT LOSSES - Narrative (Deta
CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to equity | $ (571,090) | $ (572,395) | $ (571,522) | $ (551,611) |
Impact of ASC 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to equity | 3,298 | |||
Tax impact for change in accounting principle | 1,109 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to equity | $ (258,972) | (259,903) | $ (196,583) | $ (182,148) |
Retained Earnings | Impact of ASC 326 Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease to equity | 3,298 | |||
Tax impact for change in accounting principle | $ 1,109 |
CREDIT LOSSES - Schedule of Cha
CREDIT LOSSES - Schedule of Changes in Accounting Principles (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | $ 2,811 | ||
Trade Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | $ 2,408 | 2,100 | $ 2,100 |
Other Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 4,614 | 711 | 711 |
Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | $ 830 | 0 | 0 |
As Reported Under ASC 326 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 7,218 | ||
As Reported Under ASC 326 | Trade Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 3,051 | ||
As Reported Under ASC 326 | Other Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 3,372 | ||
As Reported Under ASC 326 | Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 795 | ||
Impact of ASC 326 Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 4,407 | ||
Impact of ASC 326 Adoption | Trade Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 951 | 951 | |
Impact of ASC 326 Adoption | Other Receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | 2,661 | 2,661 | |
Impact of ASC 326 Adoption | Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for Credit Losses on Receivables | $ 795 | $ 795 |
CREDIT LOSSES - Schedule of All
CREDIT LOSSES - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Jan. 01, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | $ 2,811 | |
Trade Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | $ 2,100 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 2,408 | 2,100 |
Provision for expected credit losses | (643) | |
Ending Balance, March 31, 2020 | 2,408 | |
Other Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | 711 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 4,614 | 711 |
Provision for expected credit losses | 1,242 | |
Ending Balance, March 31, 2020 | 4,614 | |
Other Assets | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | 0 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 830 | 0 |
Provision for expected credit losses | 35 | |
Ending Balance, March 31, 2020 | 830 | |
Impact of ASC 326 Adoption | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 4,407 | |
Impact of ASC 326 Adoption | Trade Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | 951 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 951 | 951 |
Impact of ASC 326 Adoption | Other Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | 2,661 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 2,661 | 2,661 |
Impact of ASC 326 Adoption | Other Assets | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1, 2020 | 795 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | $ 795 | $ 795 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Coal | $ 4,621 | $ 2,484 |
Supplies | 54,017 | 51,647 |
Total Inventories | $ 58,638 | $ 54,131 |
ACCOUNTS RECEIVABLE SECURITIZ_2
ACCOUNTS RECEIVABLE SECURITIZATION (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Costs associated with receivables facility | $ 643,000 | $ 18,514,000 | |
Line of Credit | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Unused commitment fee | 0.60% | ||
Accounts receivable eligible for securitization | $ 30,258,000 | $ 41,282,000 | |
Outstanding borrowings | 0 | 0 | |
Letters of credit outstanding | 30,919,000 | 41,211,000 | |
Remaining borrowing capacity | 0 | $ 71,000 | |
Cash collateral | 661,000 | ||
Costs associated with receivables facility | $ 341,000 | $ 382,000 | |
Minimum | Line of Credit | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Security facility program fee | 2.00% | ||
Maximum | Line of Credit | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Security facility program fee | 2.50% | ||
Restricted Cash | Line of Credit | Accounts Receivable Securitization Facility | |||
Short-term Debt [Line Items] | |||
Cash collateral | $ 661,000 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 5,053,698 | $ 5,008,180 | |
Less—Accumulated Depreciation, Depletion and Amortization | 2,965,903 | 2,916,015 | |
Total Property, Plant and Equipment—Net | 2,087,795 | 2,092,165 | |
Gross assets under finance lease | 75,435 | 52,729 | |
Accumulated amortization for finance leases | 37,861 | 31,373 | |
Amortization of right of use assets | 4,964 | $ 3,914 | |
Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 3,066,656 | 3,028,514 | |
Coal Properties and Surface Lands | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 873,597 | 872,909 | |
Airshafts | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 443,600 | 437,003 | |
Mine Development | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 342,707 | 342,706 | |
Advance Mining Royalties | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 327,138 | $ 327,048 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Subsidence Liability | $ 96,022 | $ 90,645 |
Accrued Payroll and Benefits | 15,674 | 21,102 |
Accrued Interest | 9,280 | 6,281 |
Accrued Other Taxes | 5,407 | 4,753 |
Litigation | 2,685 | 2,565 |
Short-Term Incentive Compensation | 1,456 | 3,997 |
Other | 12,139 | 9,719 |
Current Portion of Long-Term Liabilities: | ||
Postretirement Benefits Other than Pensions | 31,359 | 31,833 |
Asset Retirement Obligations | 21,741 | 21,741 |
Operating Lease Liability | 18,249 | 19,479 |
Pneumoconiosis Benefits | 12,251 | 12,331 |
Workers' Compensation | 10,998 | 11,323 |
Total Other Accrued Liabilities | $ 237,261 | $ 235,769 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt, net | $ 648,614 | $ 685,855 | |
Less: Unamortized Debt Issuance Costs | 8,966 | 10,323 | |
Less amounts due in one year | 43,687 | 32,053 | |
Long-Term Debt | 604,927 | 653,802 | |
Current portion of finance lease obligations | 23,754 | 18,219 | |
Loans Payable | Term Loan B | |||
Debt Instrument [Line Items] | |||
Long-term debt, net | 271,125 | 271,751 | |
Long term debt, gross | 272,250 | 272,938 | |
Unamortized discount | $ 1,125 | $ 1,187 | |
Weighted average interest rate | 5.49% | 6.30% | |
Loans Payable | MEDCO Revenue Bonds in Series due September 2025 at 5.75% | |||
Debt Instrument [Line Items] | |||
Long term debt, gross | $ 102,865 | $ 102,865 | |
Stated interest rate | 5.75% | ||
Loans Payable | Term Loan A | |||
Debt Instrument [Line Items] | |||
Long term debt, gross | $ 85,000 | $ 88,750 | |
Weighted average interest rate | 4.74% | 5.55% | |
Loans Payable | Advance Royalty Commitments (10.78% Weighted Average Interest Rate) | |||
Debt Instrument [Line Items] | |||
Long term debt, gross | $ 1,895 | $ 1,895 | |
Weighted average interest rate | 10.78% | ||
Senior Notes | 11.00% Senior Secured Second Lien Notes due November 2025 | |||
Debt Instrument [Line Items] | |||
Long term debt, gross | $ 178,452 | 221,628 | |
Stated interest rate | 11.00% | 11.00% | |
Secured Debt | Other Asset-Backed Financing Arrangements | |||
Debt Instrument [Line Items] | |||
Long term debt, gross | $ 18,243 | $ 9,289 | |
Weighted average interest rate | 5.42% | 5.07% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Mar. 28, 2019USD ($) | Mar. 31, 2020USD ($)Financing_Arrangement | Mar. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2022USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Undivided interest | 75.00% | |||||||
(Gain) Loss on Debt Extinguishment | $ (16,833,000) | $ 23,143,000 | ||||||
Number of asset-backed financing arrangements | Financing_Arrangement | 2 | |||||||
Collateral amount | $ 18,243,000 | |||||||
Derivative Liability, Current | 3,861,000 | $ 154,000 | ||||||
Net unrealized loss | 2,773,000 | 0 | ||||||
Net unrealized loss, tax benefit | 933,000 | 0 | ||||||
Gain reclassified to interest expense | 4,000 | |||||||
Notional amount | $ 150,000,000 | |||||||
Estimated period for expected loss | 12 months | |||||||
Loss to be reclassified into earnings | $ 1,667,000 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | 0 | |||||||
Loans Payable | Term Loan A | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | ||||||
Amendment to basis points | 0.50% | |||||||
Weighted average interest rate | 4.74% | 5.55% | ||||||
Loans Payable | Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 275,000,000 | 400,000,000 | ||||||
Amendment to basis points | 1.50% | |||||||
Repayment on line of credit | 110,000,000 | |||||||
Repayment, percent of excess cash flow | 75.00% | |||||||
Repayment, decrease to percent of excess cash flow | 25.00% | |||||||
Weighted average interest rate | 5.49% | 6.30% | ||||||
Senior Notes | 11.00% Senior Secured Second Lien Notes due November 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 300,000,000 | |||||||
Stated interest rate | 11.00% | 11.00% | ||||||
Debt repurchased | $ 43,176,000 | $ 7,000,000 | ||||||
Secured Debt | Other Asset-Backed Financing Maturing December 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Collateral amount | 14,900,000 | |||||||
Secured Debt | Other Asset-Backed Financing Maturing September 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Collateral amount | $ 3,343,000 | |||||||
Secured Debt | Other Asset-Backed Financing Arrangements | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate | 5.42% | 5.07% | ||||||
Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | $ 300,000,000 | ||||||
Outstanding borrowings | $ 0 | $ 0 | ||||||
Covenant, maximum annual dividend | $ 50,000,000 | |||||||
First lien gross leverage ratio, maximum | 1.75 | |||||||
First lien gross leverage ratio, actual | 1.45 | |||||||
Total net leverage ratio, maximum | 2.75 | |||||||
Total net leverage ratio, actual | 2.17 | |||||||
Fixed charge coverage ratio, minimum | 1.10 | |||||||
Fixed charge coverage ratio | 1.27 | |||||||
Letters of credit outstanding | $ 79,880,000 | 69,588,000 | ||||||
Remaining borrowing capacity | $ 320,120,000 | $ 330,412,000 | ||||||
Minimum | Loans Payable | Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment, percent of excess cash flow | 0.00% | |||||||
Maximum | Loans Payable | Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment, percent of excess cash flow | 75.00% | |||||||
Scenario, Forecast | Loans Payable | Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Amount | $ 50,000,000 | $ 150,000,000 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Thousands | Aug. 23, 2017plaintiff | Apr. 24, 2017plaintiff | Mar. 31, 2020USD ($)mine | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | ||||
Number of mines sold | mine | 5 | |||
Guarantees maximum exposure | $ | $ 20,000 | $ 20,000 | ||
Fair value of guarantees | $ | $ 444 | $ 482 | ||
Fitzwater Litigation | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 3 | |||
Casey Litigation | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 2 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Commitment Expiration (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | $ 744,408 |
Less Than 1 Year | 653,781 |
1-3 Years | 89,897 |
3-5 Years | 398 |
Beyond 5 Years | 332 |
Letters of Credit | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 110,799 |
Less Than 1 Year | 76,886 |
1-3 Years | 33,913 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Letters of Credit | Employee-Related | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 64,558 |
Less Than 1 Year | 35,806 |
1-3 Years | 28,752 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Letters of Credit | Environmental | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 398 |
Less Than 1 Year | 398 |
1-3 Years | 0 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Letters of Credit | Other | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 45,843 |
Less Than 1 Year | 40,682 |
1-3 Years | 5,161 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Surety Bonds | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 618,955 |
Less Than 1 Year | 569,547 |
1-3 Years | 49,408 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Surety Bonds | Employee-Related | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 87,424 |
Less Than 1 Year | 69,889 |
1-3 Years | 17,535 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Surety Bonds | Environmental | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 527,406 |
Less Than 1 Year | 496,365 |
1-3 Years | 31,041 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Surety Bonds | Other | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 4,125 |
Less Than 1 Year | 3,293 |
1-3 Years | 832 |
3-5 Years | 0 |
Beyond 5 Years | 0 |
Guarantees | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 14,654 |
Less Than 1 Year | 7,348 |
1-3 Years | 6,576 |
3-5 Years | 398 |
Beyond 5 Years | 332 |
Guarantees | Other | |
Guarantor Obligations [Line Items] | |
Total Amounts Committed | 14,654 |
Less Than 1 Year | 7,348 |
1-3 Years | 6,576 |
3-5 Years | 398 |
Beyond 5 Years | $ 332 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lease Guarantees | $ (444) | $ (482) |
Fair Value Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lease Guarantees | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lease Guarantees | 0 | 0 |
Derivative liabilities | (3,861) | (154) |
Fair Value Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lease Guarantees | (444) | (482) |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-Term Debt, Carrying Amount | $ 657,580 | $ 696,178 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-Term Debt, Fair Value | $ 447,291 | $ 642,018 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Industry Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | $ 275,100 | $ 356,982 | |
Earnings (Loss) Before Income Tax | 4,383 | 19,453 | |
Segment Assets | 2,653,468 | 2,767,041 | $ 2,693,802 |
Depreciation, Depletion and Amortization | 54,943 | 50,724 | |
Capital Expenditures | 27,178 | 34,171 | |
Coal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 255,452 | 332,502 | |
Terminal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 16,501 | 17,818 | |
Freight Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 3,147 | 6,662 | |
PAMC | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 258,599 | 339,164 | |
Earnings (Loss) Before Income Tax | 10,875 | 64,698 | |
Segment Assets | 1,949,655 | 1,992,549 | |
Depreciation, Depletion and Amortization | 48,418 | 44,868 | |
Capital Expenditures | 20,692 | 32,372 | |
PAMC | Coal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 255,452 | 332,502 | |
PAMC | Terminal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
PAMC | Freight Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 3,147 | 6,662 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 16,501 | 17,818 | |
Earnings (Loss) Before Income Tax | (6,492) | (45,245) | |
Segment Assets | 703,813 | 774,492 | |
Depreciation, Depletion and Amortization | 6,525 | 5,856 | |
Capital Expenditures | 6,486 | 1,799 | |
Other | Coal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
Other | Terminal Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | 16,501 | 17,818 | |
Other | Freight Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | $ 0 | $ 0 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Segment Revenues from Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | $ 275,100 | $ 356,982 |
PAMC | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 258,599 | 339,164 |
Revenue | Customer Concentration Risk | Customer A | PAMC | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 38,908 | 61,872 |
Revenue | Customer Concentration Risk | Customer B | PAMC | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | 104,354 | 123,118 |
Revenue | Customer Concentration Risk | Customer C | PAMC | ||
Revenue, Major Customer [Line Items] | ||
Revenue from contracts with customers | $ 35,683 | $ 41,866 |
SEGMENT INFORMATION - Schedul_3
SEGMENT INFORMATION - Schedule of Total Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Items Excluded from Segment Assets: | |||
Deferred Tax Assets | $ 102,425 | $ 103,505 | |
Total Consolidated Assets | 2,653,468 | $ 2,693,802 | $ 2,767,041 |
Corporate Reconciling Items and Eliminations | |||
Items Excluded from Segment Assets: | |||
Cash and Other Investments | 91,731 | 186,295 | |
Deferred Tax Assets | 102,425 | 77,614 | |
Reportable Segments | Operating Segments | |||
Items Excluded from Segment Assets: | |||
Total Consolidated Assets | 1,949,655 | 1,992,549 | |
All Other Segments | Operating Segments | |||
Items Excluded from Segment Assets: | |||
Total Consolidated Assets | $ 509,657 | $ 510,583 |
ADDITIONAL INFORMATION WITH R_3
ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue and Other Income: | ||
Revenue from contracts with customers | $ 275,100 | $ 356,982 |
Miscellaneous Other Income | 16,170 | 13,292 |
(Loss) Gain on Sale of Assets | (14) | 339 |
Total Revenue and Other Income | 291,256 | 370,613 |
Costs and Expenses: | ||
Operating and Other Costs | 212,275 | 230,112 |
Depreciation, Depletion and Amortization | 54,943 | 50,724 |
Freight Expense | 3,147 | 6,662 |
Selling, General and Administrative Costs | 17,670 | 21,923 |
(Gain) Loss on Debt Extinguishment | (16,833) | 23,143 |
Interest Expense, net | 15,671 | 18,596 |
Total Costs and Expenses | 286,873 | 351,160 |
Earnings Before Income Tax | 4,383 | 19,453 |
Income Tax Expense (Benefit) | 1,908 | (850) |
Net Income | 2,475 | 20,303 |
Less: Net Income Attributable to Noncontrolling Interest | 108 | 5,868 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | 2,367 | 14,435 |
Company and Restricted Subsidiaries | ||
Revenue and Other Income: | ||
Miscellaneous Other Income | 3,863 | 11,981 |
(Loss) Gain on Sale of Assets | (14) | 334 |
Total Revenue and Other Income | 214,299 | 284,506 |
Costs and Expenses: | ||
Operating and Other Costs | 163,592 | 177,603 |
Depreciation, Depletion and Amortization | 43,015 | 39,507 |
Freight Expense | 2,360 | 4,997 |
Selling, General and Administrative Costs | 13,624 | 17,363 |
(Gain) Loss on Debt Extinguishment | (16,833) | 23,143 |
Interest Expense, net | 13,516 | 17,245 |
Total Costs and Expenses | 219,274 | 279,858 |
Earnings Before Income Tax | (4,975) | 4,648 |
Income Tax Expense (Benefit) | 1,908 | (850) |
Net Income | (6,883) | 5,498 |
Less: Net Income Attributable to Noncontrolling Interest | 108 | 5,868 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | (6,991) | (370) |
Unrestricted Subsidiaries | ||
Revenue and Other Income: | ||
Miscellaneous Other Income | 12,307 | 1,311 |
(Loss) Gain on Sale of Assets | 0 | 5 |
Total Revenue and Other Income | 76,957 | 86,107 |
Costs and Expenses: | ||
Operating and Other Costs | 48,683 | 52,509 |
Depreciation, Depletion and Amortization | 11,928 | 11,217 |
Freight Expense | 787 | 1,665 |
Selling, General and Administrative Costs | 4,046 | 4,560 |
(Gain) Loss on Debt Extinguishment | 0 | 0 |
Interest Expense, net | 2,155 | 1,351 |
Total Costs and Expenses | 67,599 | 71,302 |
Earnings Before Income Tax | 9,358 | 14,805 |
Income Tax Expense (Benefit) | 0 | 0 |
Net Income | 9,358 | 14,805 |
Less: Net Income Attributable to Noncontrolling Interest | 0 | 0 |
Net Income Attributable to CONSOL Energy Inc. Shareholders | 9,358 | 14,805 |
Coal Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 255,452 | 332,502 |
Coal Revenue | Company and Restricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 191,589 | 249,376 |
Coal Revenue | Unrestricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 63,863 | 83,126 |
Terminal Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 16,501 | 17,818 |
Terminal Revenue | Company and Restricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 16,501 | 17,818 |
Terminal Revenue | Unrestricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 0 | 0 |
Freight Revenue | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 3,147 | 6,662 |
Freight Revenue | Company and Restricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | 2,360 | 4,997 |
Freight Revenue | Unrestricted Subsidiaries | ||
Revenue and Other Income: | ||
Revenue from contracts with customers | $ 787 | $ 1,665 |
ADDITIONAL INFORMATION WITH R_4
ADDITIONAL INFORMATION WITH RESPECT TO UNRESTRICTED SUBSIDIARIES - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Current Assets: | |||
Cash and Cash Equivalents | $ 78,166 | $ 80,293 | |
Restricted Cash | 661 | 0 | |
Trade Receivables, net of Allowance | 113,098 | 131,688 | |
Other Receivables, net of Allowance | 33,878 | 40,984 | |
Inventories | 58,638 | 54,131 | |
Prepaid Expenses and Other Assets | 26,302 | 30,933 | |
Total Current Assets | 310,743 | 338,029 | |
Property, Plant and Equipment: | |||
Property, Plant and Equipment | 5,053,698 | 5,008,180 | |
Less—Accumulated Depreciation, Depletion and Amortization | 2,965,903 | 2,916,015 | |
Total Property, Plant and Equipment—Net | 2,087,795 | 2,092,165 | |
Other Assets: | |||
Deferred Income Taxes | 102,425 | 103,505 | |
Right of Use Asset - Operating Leases | 67,787 | 72,632 | |
Other, net of Allowance | 84,718 | 87,471 | |
Total Other Assets | 254,930 | 263,608 | |
TOTAL ASSETS | 2,653,468 | 2,693,802 | $ 2,767,041 |
Current Liabilities: | |||
Accounts Payable | 89,556 | 106,223 | |
Accounts (Recoverable) Payable - Related Parties | 0 | 0 | |
Current Portion of Long-Term Debt | 67,441 | 50,272 | |
Other Accrued Liabilities | 237,261 | 235,769 | |
Total Current Liabilities | 394,258 | 392,264 | |
Long-Term Debt: | |||
Long-Term Debt | 604,927 | 653,802 | |
Finance Lease Obligations | 21,942 | 9,036 | |
Total Long-Term Debt | 626,869 | 662,838 | |
Deferred Credits and Other Liabilities: | |||
Postretirement Benefits Other Than Pensions | 429,085 | 432,496 | |
Pneumoconiosis Benefits | 201,718 | 202,142 | |
Asset Retirement Obligations | 254,805 | 250,211 | |
Workers’ Compensation | 60,961 | 61,194 | |
Salary Retirement | 44,439 | 49,930 | |
Operating Lease Liability | 52,975 | 55,413 | |
Other | 17,268 | 14,919 | |
Total Deferred Credits and Other Liabilities | 1,061,251 | 1,066,305 | |
TOTAL LIABILITIES | 2,082,378 | 2,121,407 | |
Total CONSOL Energy Inc. Stockholders’ Equity | 439,405 | 435,199 | |
Noncontrolling Interest | 131,685 | 137,196 | |
TOTAL LIABILITIES AND EQUITY | 2,653,468 | 2,693,802 | |
Company and Restricted Subsidiaries | |||
Current Assets: | |||
Cash and Cash Equivalents | 77,896 | 79,717 | |
Restricted Cash | 0 | ||
Trade Receivables, net of Allowance | 0 | 0 | |
Other Receivables, net of Allowance | 31,654 | 39,412 | |
Inventories | 44,852 | 41,478 | |
Prepaid Expenses and Other Assets | 21,931 | 25,181 | |
Total Current Assets | 176,333 | 185,788 | |
Property, Plant and Equipment: | |||
Property, Plant and Equipment | 4,059,878 | 4,023,282 | |
Less—Accumulated Depreciation, Depletion and Amortization | 2,382,961 | 2,344,777 | |
Total Property, Plant and Equipment—Net | 1,676,917 | 1,678,505 | |
Other Assets: | |||
Deferred Income Taxes | 102,425 | 103,505 | |
Right of Use Asset - Operating Leases | 53,268 | 56,937 | |
Other, net of Allowance | 71,277 | 74,015 | |
Total Other Assets | 226,970 | 234,457 | |
TOTAL ASSETS | 2,080,220 | 2,098,750 | |
Current Liabilities: | |||
Accounts Payable | 65,078 | 79,140 | |
Accounts (Recoverable) Payable - Related Parties | (4,279) | (1,419) | |
Current Portion of Long-Term Debt | 58,529 | 45,020 | |
Other Accrued Liabilities | 197,677 | 196,314 | |
Total Current Liabilities | 317,005 | 319,055 | |
Long-Term Debt: | |||
Long-Term Debt | 452,472 | 505,646 | |
Finance Lease Obligations | 16,867 | 7,391 | |
Total Long-Term Debt | 469,339 | 513,037 | |
Deferred Credits and Other Liabilities: | |||
Postretirement Benefits Other Than Pensions | 429,085 | 432,496 | |
Pneumoconiosis Benefits | 195,449 | 196,114 | |
Asset Retirement Obligations | 243,837 | 239,410 | |
Workers’ Compensation | 57,313 | 57,583 | |
Salary Retirement | 44,439 | 49,930 | |
Operating Lease Liability | 42,039 | 43,906 | |
Other | 16,445 | 14,134 | |
Total Deferred Credits and Other Liabilities | 1,028,607 | 1,033,573 | |
TOTAL LIABILITIES | 1,814,951 | 1,865,665 | |
Total CONSOL Energy Inc. Stockholders’ Equity | 133,584 | 95,889 | |
Noncontrolling Interest | 131,685 | 137,196 | |
TOTAL LIABILITIES AND EQUITY | 2,080,220 | 2,098,750 | |
Unrestricted Subsidiaries | |||
Current Assets: | |||
Cash and Cash Equivalents | 270 | 576 | |
Restricted Cash | 661 | ||
Trade Receivables, net of Allowance | 113,098 | 131,688 | |
Other Receivables, net of Allowance | 2,224 | 1,572 | |
Inventories | 13,786 | 12,653 | |
Prepaid Expenses and Other Assets | 4,371 | 5,752 | |
Total Current Assets | 134,410 | 152,241 | |
Property, Plant and Equipment: | |||
Property, Plant and Equipment | 993,820 | 984,898 | |
Less—Accumulated Depreciation, Depletion and Amortization | 582,942 | 571,238 | |
Total Property, Plant and Equipment—Net | 410,878 | 413,660 | |
Other Assets: | |||
Deferred Income Taxes | 0 | 0 | |
Right of Use Asset - Operating Leases | 14,519 | 15,695 | |
Other, net of Allowance | 13,441 | 13,456 | |
Total Other Assets | 27,960 | 29,151 | |
TOTAL ASSETS | 573,248 | 595,052 | |
Current Liabilities: | |||
Accounts Payable | 24,478 | 27,083 | |
Accounts (Recoverable) Payable - Related Parties | 4,279 | 1,419 | |
Current Portion of Long-Term Debt | 8,912 | 5,252 | |
Other Accrued Liabilities | 39,584 | 39,455 | |
Total Current Liabilities | 77,253 | 73,209 | |
Long-Term Debt: | |||
Long-Term Debt | 152,455 | 148,156 | |
Finance Lease Obligations | 5,075 | 1,645 | |
Total Long-Term Debt | 157,530 | 149,801 | |
Deferred Credits and Other Liabilities: | |||
Postretirement Benefits Other Than Pensions | 0 | 0 | |
Pneumoconiosis Benefits | 6,269 | 6,028 | |
Asset Retirement Obligations | 10,968 | 10,801 | |
Workers’ Compensation | 3,648 | 3,611 | |
Salary Retirement | 0 | 0 | |
Operating Lease Liability | 10,936 | 11,507 | |
Other | 823 | 785 | |
Total Deferred Credits and Other Liabilities | 32,644 | 32,732 | |
TOTAL LIABILITIES | 267,427 | 255,742 | |
Total CONSOL Energy Inc. Stockholders’ Equity | 305,821 | 339,310 | |
Noncontrolling Interest | 0 | 0 | |
TOTAL LIABILITIES AND EQUITY | $ 573,248 | $ 595,052 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Aug. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 31, 2019 | Nov. 28, 2017 | |
CONSOL Coal Resources LP | ||||||
Related Party Transaction [Line Items] | ||||||
Net payable | $ 4,279,000 | $ 1,419,000 | ||||
Stock and debt repurchase restricted authorized amount | $ 50,000,000 | |||||
Consol Coal Resources LP Units | ||||||
Related Party Transaction [Line Items] | ||||||
Shares converted | 11,611,067 | |||||
Conversion basis | 1 | |||||
Senior Secured Revolving Credit Facility | Line of Credit | ||||||
Related Party Transaction [Line Items] | ||||||
Maximum borrowing capacity | $ 400,000,000 | |||||
CNX Resources Corporation | ||||||
Related Party Transaction [Line Items] | ||||||
Notes receivable, related parties | $ 6,791,000 | |||||
Affiliated Entity | Affiliated Company Credit Agreement | CONSOL Coal Resources LP | ||||||
Related Party Transaction [Line Items] | ||||||
Maximum borrowing capacity | 275,000,000 | |||||
Line of credit amount drawn | $ 201,000,000 | |||||
Interest expense | $ 2,114,000 | $ 1,796,000 | ||||
Minimum | Affiliated Entity | Affiliated Company Credit Agreement | CONSOL Coal Resources LP | ||||||
Related Party Transaction [Line Items] | ||||||
Stated interest rate | 3.75% | |||||
Maximum | Affiliated Entity | Affiliated Company Credit Agreement | CONSOL Coal Resources LP | ||||||
Related Party Transaction [Line Items] | ||||||
Stated interest rate | 4.75% |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Disclosures (Details) - Majority Shareholder - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Total Services from CONSOL Energy | $ 3,646 | $ 3,819 |
Operating and Other Costs | ||
Related Party Transaction [Line Items] | ||
Total Services from CONSOL Energy | 853 | 763 |
Selling, General and Administrative Costs | ||
Related Party Transaction [Line Items] | ||
Total Services from CONSOL Energy | $ 2,793 | $ 3,056 |
STOCK, UNIT AND DEBT REPURCHA_2
STOCK, UNIT AND DEBT REPURCHASES (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Jul. 31, 2019 | May 31, 2019 | Dec. 31, 2018 | Jul. 31, 2018 | Nov. 30, 2017 | |
Class of Stock [Line Items] | |||||||
Aggregate authorized amount | $ 50,000,000 | ||||||
Stock and debt repurchase authorized amount | $ 100,000,000 | ||||||
11.00% Senior Secured Second Lien Notes due November 2025 | |||||||
Class of Stock [Line Items] | |||||||
Repayments of debt | $ 25,480,000 | $ 7,000,000 | |||||
Senior Notes | Senior Secured Notes due 2025 | |||||||
Class of Stock [Line Items] | |||||||
Stated interest rate | 11.00% | 11.00% | |||||
Senior Notes | 11.00% Senior Secured Second Lien Notes due November 2025 | |||||||
Class of Stock [Line Items] | |||||||
Stated interest rate | 11.00% | 11.00% | |||||
Repayments of debt | $ 43,176,000 | $ 7,000,000 | |||||
Consol Coal Resources LP Units | |||||||
Class of Stock [Line Items] | |||||||
Stock and debt repurchase additional amount authorized | $ 25,000,000 | ||||||
CONSOL Coal Resources LP | |||||||
Class of Stock [Line Items] | |||||||
Stock and debt repurchase authorized amount | $ 200,000,000 | $ 175,000,000 | |||||
Stock and debt repurchase additional amount authorized | $ 25,000,000 | 75,000,000 | |||||
Stock and debt repurchase restricted authorized amount | $ 50,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | May 11, 2020 | May 08, 2020 | Jul. 31, 2019 | May 31, 2019 | Jul. 31, 2018 |
Subsequent Event [Line Items] | |||||
Stock and debt repurchase authorized amount | $ 100,000,000 | ||||
CONSOL Coal Resources LP | |||||
Subsequent Event [Line Items] | |||||
Stock and debt repurchase additional amount authorized | $ 25,000,000 | $ 75,000,000 | |||
Stock and debt repurchase authorized amount | $ 200,000,000 | $ 175,000,000 | |||
Subsequent Event | CONSOL Coal Resources LP | |||||
Subsequent Event [Line Items] | |||||
Stock and debt repurchase additional amount authorized | $ 70,000,000 | ||||
Stock and debt repurchase authorized amount | $ 270,000,000 | ||||
Stock and debt repurchase available capacity | $ 100,622,000 |