PITTSBURGH, Oct. 30, 2017 /PRNewswire/ -- CNX Coal
Resources LP (NYSE: CNXC) today reported financial and operating
results for the quarter ended September 30, 2017.
Third Quarter 2017 Results
Highlights of the CNXC third quarter 2017 results include:
- Cash distribution of $0.5125
per limited partner unit
- Net income of $3.6
million
- Adjusted EBITDA1 of $18.5
million
- Leverage ratio1 improves to 1.9x compared to 2.5x
on December 31, 2016
- Coal sales improve 5% to 1.6 million tons, compared to the
year-ago period
Management Comments
"While the third quarter of 2017 was challenging on the
operational front, the CNXC team stayed focused on meeting our
customers' needs and managing our cost structure while production
was limited," said Jimmy Brock, Chief Executive Officer of CNX
Coal Resources GP LLC (the "general partner"). "The marketing team
did an excellent job of communicating with our customers to make
sure that shipments were managed to meet their requirements during
the quarter when we were volume-constrained due to Enlow Fork
geological conditions in July, and one idled Bailey longwall in
September. The operational team added incremental shifts at other
longwalls to make up for some of the lost production and we expect
to do this in the fourth quarter as well. I am very pleased to
announce that all of our longwalls resumed production in the first
week of October, and we expect to meet our contractual obligations
and sales guidance for the full year."
Sales & Marketing
On the marketing front, the third quarter was relatively strong
despite the unforeseen issues with production. We sold 1.6 million
tons of coal to 42 different end users and more importantly took
advantage of further improvements in the forward markets to secure
additional contracts for the future. The CNXC marketing team was
successful in securing additional tonnage in both the cross-over
metallurgical and thermal coal markets to improve our sold position
for 2018 and 2019 to 80% and 41% respectively, assuming an
approximately 6.75 million ton production run rate. We are also
fully contracted for the balance of 2017.
Demand and pricing for our export coal continued to strengthen
throughout the third quarter and into October. Recent
strength in international thermal coal markets has been driven by a
variety of factors, including strong demand from China and continued growth in demand from
developing markets such as India,
coupled with labor and weather related issues that have affected
seaborne supplies of thermal coal and petroleum coke. During
the third quarter of 2017, index prices for prompt delivery of
thermal coal into northwest Europe
rose by more than 10% and averaged ~40% higher than the year-ago
quarter. Against this backdrop, we worked to expand the
international markets for our product, securing approval for our
coal to be used in an African industrial market that typically has
been dominated by South African suppliers. Additionally in
the third quarter, we contracted 200 thousand new tons in the
crossover high-vol metallurgical market for delivery during the
remainder of 2017 and first quarter of 2018.
On the domestic side, according to the latest data published by
the U.S. Energy Information Administration (EIA), power plant coal
stockpiles stood at 144 million tons as of the end of August, which
was down 16 million tons compared to the same time last year.
Declining inventory levels at power plants, steady natural gas
prices, a strong export market, and production issues in Northern
Appalachia create a very attractive scenario for tightening the
domestic steam coal market ahead of impending winter demand. We
believe this dynamic should support both spot and term contracting
activity, providing us with attractive opportunities to add to our
existing solid base of sales for the next several years.
Operations Summary
The third quarter of 2017 was a challenging quarter for us on
the operational front, and it significantly impacted our ability to
deliver normal production volumes at the Pennsylvania Mining
Complex (PAMC). In the month of July, our production was limited by
Enlow Fork geological issues, which we previously disclosed. On a
positive note, our operational team was largely able to make up for
the lost production from July by delivering record production as
the PAMC achieved its highest-ever monthly coal production in
August. However, this was followed by an unanticipated permit delay
at one of our longwalls at Bailey, which essentially reduced our
productive capacity by 20% for the month of September. Despite all
of these challenges, CNXC produced 1.5 million tons of coal during
the third quarter, compared to 1.5 million tons in the year-ago
quarter. We also sold 1.6 million tons of coal during the third
quarter of 2017 compared to 1.5 million tons during the year-ago
period.
On the pricing front, our average revenue per ton was mostly in
line with the year-ago period, as improved pricing for our export
shipments was offset by lower pricing for our domestic shipments
and by a smaller portion of our production being sold into the
domestic market. Domestic realizations were impacted by lower
demand due to milder summer weather and lower power prices in our
domestic market areas versus the year-ago quarter, which reduced
realizations under our netback contracts and caused us to ship a
greater portion of our production into the export thermal market
rather than the domestic thermal market. Export shipments accounted
for approximately 33% of our total sales volume during the third
quarter, and pricing for our export shipments, though much improved
versus last year, still averaged below pricing for our domestic
shipments.
Our total cost of coal sold increased to $59.0
million during the third quarter, compared to $54.1
million during the year-ago quarter, driven primarily by one
month of idle time at one Bailey longwall and by
higher-than-expected costs at Enlow Fork. The average cost of coal
sold1 in the quarter increased by 4.3%
to $37.32 per ton, compared to $35.79 per ton
in the year-ago quarter. Our average cash margin per ton
sold1 declined by 11.9% compared to the year-ago quarter
due largely to this higher average cost of coal sold.
Our selling, general and administrative expenses for the quarter
were approximately $4.3 million
compared to $2.7 million for the
year-ago period. The increase was largely driven by the
modification of certain employees' phantom awards to eliminate the
service requirement as a result of organizational
restructuring.
Bailey Mine Update and Operational Outlook
On October 6, 2017, the Bailey
longwall that was affected by the permit delay completed its move
to the new panel. The PAMC is now running at its normal production
rate, and in order to make up for the lost production during the
third quarter, we expect to run additional shifts over the weekends
during the fourth quarter. Furthermore, we are reviewing various
cost reduction measures to offset the soft third quarter results.
We are reducing our planned capital spending for the remainder of
the year and adjusting our guidance ranges to reflect the same.
|
|
Three Months
Ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
Coal
Production
|
million
tons
|
1.5
|
|
1.5
|
Coal Sales
|
million
tons
|
1.6
|
|
1.5
|
Average Revenue Per
Ton
|
per ton
|
$44.16
|
|
$44.30
|
Average Cost of Coal
Sold1
|
per ton
|
$37.32
|
|
$35.79
|
Average Cash Margin
Per Ton Sold1
|
per ton
|
$13.22
|
|
$15.01
|
Conversion of Class A Preferred Units
On October 2, 2017, pursuant to the terms of the
Class A Units, CONSOL Energy Inc. elected to convert 3,956,496
of its Class A units (100% of the Class A units) into 3,956,496
Common Units of CNX Coal Resources LP for no additional
consideration. With this conversion, CONSOL Energy Inc. owns
5,006,496 Common Units, 11,611,067 Subordinated Units, 100% of the
incentive distribution rights and a 1.7% general partner interest
(reflecting 100% of the general partner units) of CNX Coal
Resources LP.
Quarterly Distribution
During the third quarter of 2017, CNXC generated net cash
provided by operating activities of $20.0 million and
distributable cash flow1 of $5.7 million,
yielding a distribution coverage ratio of 0.5x1. Our
distribution coverage ratio calculation is based on the estimated
maintenance capital expenditure of $8.9
million, while our actual cash maintenance capital
expenditure for the third quarter was $6.8 million. Based on
our current outlook for the coal markets, lower actual capital
expenditures and strong net cash provided by operating activities,
the board of directors of the general partner, has elected to pay a
cash distribution of $0.5125 per unit to all limited partner
unitholders and the holder of the general partner interest. In
making this decision, the board also considered the impact of
several unusual items such as the Bailey longwall idling and
organizational restructuring, which weighed on the third quarter
results. As previously announced on October
26, 2017, the distribution to all unitholders of the
Partnership will be made on November 15, 2017, to such
holders of record at the close of business on November 8, 2017.
Name Change in Connection with the Spin-off
In connection with the impending spin-off of CONSOL Energy
Inc.'s coal business, the board of directors of our general partner
has approved the name change of CNX Coal Resources LP to CONSOL
Coal Resources LP. In connection with the name change, CNX Coal
Resources will also change its NYSE ticker symbol to "CCR" from
"CNXC", and its common units will continue to be listed on NYSE.
The name and ticker symbol changes will be effective on the date of
the distribution of CONSOL Mining Corporation shares to CONSOL
Energy Inc. stockholders, which currently is anticipated in the
month of November 2017.
Refinancing of Revolving Credit Facility in Connection with
the Spin-off
On October 16, 2017, CONSOL Mining
Corporation ("CONSOL Mining"), a subsidiary of CONSOL Energy, filed
an Amendment No. 4 to the Registration Statement on Form 10 to
provide preliminary estimated results for the quarter ended
September 30, 2017 related to the
assets and businesses that CONSOL Mining is expected to own on
completion of the spin-off. It is anticipated that CONSOL Mining
will enter into various financing arrangements in connection with
the spin-off, the proceeds of which will be used, among other
things, to refinance as an intercompany loan the existing
indebtedness of the Partnership under its Revolving Credit Facility
(subject to approval by the conflicts committee of the board of
directors of our general partner and by the full board of directors
of our general partner and subject to execution of an amendment to
the operating agreement in respect of the Pennsylvania Mining
Complex). In connection therewith and subject to completion of the
spin-off and approval by the conflicts committee of the board of
directors of our general partner and by the full board of directors
of our general partner, it is anticipated that the Partnership's
Revolving Credit Facility will be fully repaid and terminated and
the Partnership will enter into an intercompany loan agreement with
CONSOL Mining, which will subsequently become the owner of our
general partner.
Guidance and Outlook
Based on our year-to-date results, production plans, outlook for
the coal markets, and improved visibility we are adjusting our
previously provided guidance ranges for 2017:
- Coal sales of 6.50-6.75 million tons
- Adjusted EBITDA1 of $95-$102
million2
- Maintenance capital expenditures of $23-$27 million
Third Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the third quarter of 2017 financial and operational
results, is scheduled for October 30, 2017 at 5:00
PM EDT. Prepared remarks by members of management will be followed
by a question and answer session. Interested parties may listen via
webcast on the Events page of our website, www.cnxlp.com. An
archive of the webcast will be available for 30 days after the
event.
Participant dial in
(toll free)
|
1-855-656-0928
|
Participant
international dial in
|
1-412-902-4112
|
1 "Adjusted EBITDA", "Distribution coverage ratio",
"Distributable cash flow", "Average cost of coal sold", "Average
cash margin per ton sold" and "Leverage ratio" are non-GAAP
financial measures, which are reconciled to GAAP financial measures
under the caption "Reconciliation of Non-GAAP Financial
Measures".
2 CNXC is unable to provide a reconciliation of Adjusted
EBITDA guidance to Net Income, the most comparable financial
measure calculated in accordance with GAAP, due to the unknown
effect, timing and potential significance of certain income
statement items.
About CNX Coal Resources LP
CNX Coal Resources is a growth-oriented master limited
partnership formed by CONSOL Energy Inc. (NYSE: CNX) to manage and
further develop all of CONSOL's active coal operations in
Pennsylvania. Its assets include a 25% undivided interest in,
and operational control over, CONSOL's Pennsylvania mining complex, which consists of
three underground mines and related infrastructure. More
information is available on our website www.cnxlp.com.
Contacts:
Investor:
Mitesh Thakkar, (724)
485-3133
miteshthakkar@cnxlp.com
Media:
Zach Smith, (724) 485-4017
zacherysmith@cnxlp.com
Reconciliation of Non-GAAP Financial Measures
We evaluate our cost of coal sold on a cost per ton basis.
Our cost of coal sold per ton represents our costs of coal sold
divided by the tons of coal we sell. We define cost of coal sold as
operating and other production costs related to produced tons sold,
along with changes in coal inventory, both in volumes and carrying
values. The cost of coal sold per ton includes items such as direct
operating costs, royalty and production taxes, direct
administration, and depreciation, depletion and amortization
costs. Our costs exclude any indirect costs such as general
and administrative costs and other costs not directly attributable
to the production of coal. The GAAP measure most directly
comparable to cost of coal sold is total costs.
We define average cash margin per ton as average coal revenue
per ton, net of average cost of coal sold per ton, less
depreciation, depletion and amortization.
We define adjusted EBITDA as (i) net income (loss) before net
interest expense, depreciation, depletion and amortization, as
adjusted for (ii) certain non-cash items, such as long-term
incentive awards including phantom units under the CNX Coal
Resources LP 2015 Long-Term Incentive Plan ("Unit Based
Compensation"). The GAAP measure most directly comparable to
adjusted EBITDA is net income.
We define distributable cash flow as (i) net income (loss)
before net interest expense, depreciation, depletion and
amortization, as adjusted for (ii) certain non-cash items, such as
Unit Based Compensation, less net cash interest paid and estimated
maintenance capital expenditures, which is defined as those
forecasted average capital expenditures required to maintain, over
the long-term, the operating capacity of our capital assets.
These estimated capital expenditures do not reflect the actual cash
capital expenditures incurred in the period presented.
Distributable cash flow will not reflect changes in working capital
balances. The GAAP measures most directly comparable to
distributable cash flow are net income and net cash provided by
operating activities.
We define leverage ratio as the ratio of net debt to last twelve
month (LTM) earnings before interest expense, depreciation,
depletion and amortization, adjusted for certain non-cash items,
such as long-term incentive awards, amortization of debt issuance
and capitalized interest.
The following table presents a reconciliation of cost of coal
sold to total costs, the most directly comparable GAAP financial
measure, on a historical basis for each of the periods indicated
(in thousands).
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
Total
Costs
|
$
|
74,650
|
|
|
$
|
63,413
|
|
Freight
Expense
|
(5,451)
|
|
|
(2,407)
|
|
Selling, General and
Administrative Expenses
|
(4,283)
|
|
|
(2,660)
|
|
Interest
Expense
|
(2,404)
|
|
|
(2,223)
|
|
Other Costs
(Non-Production)
|
(2,965)
|
|
|
(1,508)
|
|
Depreciation,
Depletion and Amortization (Non-Production)
|
(544)
|
|
|
(544)
|
|
Cost of Coal
Sold
|
$
|
59,003
|
|
|
$
|
54,071
|
|
The following table presents a reconciliation of average cash
margin per ton for each of the periods indicated (in thousands,
except per ton information).
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
Total Coal
Revenue
|
$
|
69,811
|
|
|
$
|
66,922
|
|
Operating and Other Costs
|
52,160
|
|
|
45,531
|
|
Depreciation,
Depletion and Amortization
|
10,352
|
|
|
10,592
|
|
Less: Other Costs
(Non-Production)
|
(2,965)
|
|
|
(1,508)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
(544)
|
|
|
(544)
|
|
Total Cost of Coal
Sold
|
$
|
59,003
|
|
|
$
|
54,071
|
|
Total Tons
Sold
|
1,581
|
|
|
1,511
|
|
Average Revenue Per
Ton Sold
|
$
|
44.16
|
|
|
$
|
44.30
|
|
Average Cost Per Ton
Sold
|
37.32
|
|
|
35.79
|
|
Average Margin Per
Ton Sold
|
6.84
|
|
|
8.51
|
|
Add: Total
Depreciation, Depletion and Amortization Costs Per Ton
Sold
|
6.38
|
|
|
6.50
|
|
Average Cash
Margin Per Ton Sold
|
$
|
13.22
|
|
|
$
|
15.01
|
|
The following table presents a reconciliation of adjusted EBITDA
to net income, the most directly comparable GAAP financial measure,
on a historical basis for each of the periods indicated. The
table also presents a reconciliation of distributable cash flow to
net income and operating cash flows, the most directly comparable
GAAP financial measures, on a historical basis for each of the
periods indicated (in thousands).
|
|
Three Months Ended
September 30,
|
|
|
2017
|
|
2016
|
Net
Income
|
|
$
|
3,614
|
|
|
$
|
6,401
|
|
Plus:
|
|
|
|
|
Interest
Expense
|
|
2,404
|
|
|
2,223
|
|
Depreciation,
Depletion and Amortization
|
|
10,352
|
|
|
10,592
|
|
Unit Based
Compensation
|
|
2,084
|
|
|
289
|
|
Adjusted
EBITDA
|
|
$
|
18,454
|
|
|
$
|
19,505
|
|
Less:
|
|
|
|
|
Cash
Interest
|
|
1,962
|
|
|
2,181
|
|
PA Mining Acquisition
Adjusted EBITDA3
|
|
—
|
|
|
3,539
|
|
Distributions to
Preferred Units4
|
|
1,851
|
|
|
—
|
|
Estimated Maintenance
Capital Expenditures
|
|
8,893
|
|
|
6,929
|
|
Distributable Cash
Flow
|
|
$
|
5,748
|
|
|
$
|
6,856
|
|
|
|
|
|
|
Net Cash Provided
by Operating Activities
|
|
$
|
20,029
|
|
|
$
|
22,489
|
|
Plus:
|
|
|
|
|
Interest
Expense
|
|
2,404
|
|
|
2,223
|
|
Other, Including
Working Capital
|
|
(3,979)
|
|
|
(5,207)
|
|
Adjusted
EBITDA
|
|
$
|
18,454
|
|
|
$
|
19,505
|
|
Less:
|
|
|
|
|
Cash
Interest
|
|
1,962
|
|
|
2,181
|
|
PA Mining Acquisition
Adjusted EBITDA3
|
|
—
|
|
|
3,539
|
|
Distributions to
Preferred Units4
|
|
1,851
|
|
|
—
|
|
Estimated Maintenance
Capital Expenditures
|
|
8,893
|
|
|
6,929
|
|
Distributable Cash
Flow
|
|
$
|
5,748
|
|
|
$
|
6,856
|
|
Distributions
|
|
$
|
12,228
|
|
|
$
|
12,148
|
|
Distribution
Coverage
|
|
0.5
|
|
|
0.6
|
|
3PA Mining
Acquisition Adjusted EBITDA relates to the amount of Adjusted
EBITDA acquired with the PA Mining Acquisition in September
2016.
|
4Distributions to Preferred Units
represents income attributable to preferred units prior to
conversion.
|
Note: The above table reflects the additional 5% ownership of
PAMC completed September 30, 2016 as
if the additional ownership interest was owned for all periods
presented.
The following table presents a reconciliation of leverage ratio
(in thousands, except per ton information).
|
Twelve Months
Ended
|
|
September 30,
2017
|
Net Income
|
$
|
40,881
|
|
Plus:
|
|
Interest
Expense
|
9,699
|
|
Depreciation,
Depletion and Amortization
|
41,812
|
|
Unit Based
Compensation
|
4,072
|
|
Capitalized
Interest
|
257
|
|
Amortization of Debt
Issuance Costs
|
(898)
|
|
EBITDA Per Revolving
Credit Agreement
|
$
|
95,823
|
|
|
|
Borrowings on
Revolving Credit Facility
|
$
|
188,000
|
|
Capitalized
Leases
|
174
|
|
Total Debt
|
188,174
|
|
Less:
|
|
Cash on
Hand
|
3,574
|
|
Net Debt Per
Revolving Credit Agreement
|
$
|
184,600
|
|
|
|
Leverage Ratio
(Net Debt/EBITDA)
|
1.9
|
|
Cautionary Statements
Various statements in this release, including those that express
a belief, expectation or intention, may be considered
forward-looking statements under federal securities laws including
Section 21E of the Securities Exchange Act of 1934 (the "Exchange
Act") that involve risks and uncertainties that could cause actual
results to differ materially from projected results. Accordingly,
investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking
statements may include projections and estimates concerning the
timing and success of specific projects and our future production,
revenues, income and capital spending. When we use the words
"believe," "intend," "expect," "may," "should," "anticipate,"
"could," "estimate," "plan," "predict," "project," or their
negatives, or other similar expressions, the statements which
include those words are usually forward-looking statements. When we
describe strategy that involves risks or uncertainties, we are
making forward-looking statements. The forward-looking statements
in this press release speak only as of the date of this press
release; we disclaim any obligation to update these statements. We
have based these forward-looking statements on our current
expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. These risks, contingencies and
uncertainties relate to, among other matters, the following:
generation of sufficient distributable cash flow to support the
payment of minimum quarterly distributions; changes in coal prices
or the costs of mining or transporting coal; uncertainty in
estimating economically recoverable coal reserves and replacement
of reserves; our ability to develop our existing coal reserves and
successfully execute our mining plans; changes in general economic
conditions, both domestically and globally; competitive conditions
within the coal industry; changes in the consumption patterns of
coal-fired power plants and steelmakers and other factors affecting
the demand for coal by coal-fired power plants and steelmakers; the
availability and price of coal to the consumer compared to the
price of alternative and competing fuels; competition from the same
and alternative energy sources; energy efficiency and technology
trends; our ability to successfully implement our business plan;
the price and availability of debt and equity financing; operating
hazards and other risks incidental to coal mining; major equipment
failures and difficulties in obtaining equipment, parts and raw
materials; availability, reliability and costs of transporting
coal; adverse or abnormal geologic conditions, which may be
unforeseen; natural disasters, weather-related delays, casualty
losses and other matters beyond our control; interest rates; labor
availability, relations and other workforce factors; defaults by
our sponsor under our operating agreement and employee services
agreement; changes in availability and cost of capital; changes in
our tax status; delays in the receipt of, failure to receive or
revocation of necessary governmental permits; defects in title or
loss of any leasehold interests with respect to our properties; the
effect of existing and future laws and government regulations,
including the enforcement and interpretation of environmental laws
thereof; the effect of new or expanded greenhouse gas regulations;
the effects of litigation; uncertainties as whether and when CONSOL
Energy's proposed spin-off of its coal business will be completed;
diversion of management's attention from the operation of the PAMC
due to the possible spin-off; the impact of having a new sponsor of
the Partnership and the related risks related to the new sponsor;
the possibility that the spin-off will trigger an event of default
under the Partnership's Revolving Credit Facility and the related
possibly that the proposed refinancing of the Revolving Credit
Agreement through an intercompany loan agreement will not be
completed and other factors discussed in our 2016 Form 10-K under
"Risk Factors," as updated by any subsequent Form 10-Qs, which are
on file at the Securities and Exchange Commission.
CNX COAL RESOURCES
LP
|
EARNINGS
SUMMARY
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
For the Three
Months Ended,
|
|
September
30,
|
|
2017
|
|
2016
|
|
Variance
|
Revenue:
|
|
|
|
|
|
Coal
Revenue
|
$
|
69,811
|
|
|
$
|
66,922
|
|
|
$
|
2,889
|
|
Freight
Revenue
|
5,451
|
|
|
2,407
|
|
|
3,044
|
|
Other
Income
|
3,002
|
|
|
485
|
|
|
2,517
|
|
Total Revenue and
Other Income
|
78,264
|
|
|
69,814
|
|
|
8,450
|
|
Cost of Coal
Sold:
|
|
|
|
|
|
Operating
Costs
|
49,195
|
|
|
44,023
|
|
|
5,172
|
|
Depreciation,
Depletion and Amortization
|
9,808
|
|
|
10,048
|
|
|
(240)
|
|
Total Cost of Coal
Sold
|
59,003
|
|
|
54,071
|
|
|
4,932
|
|
Other
Costs:
|
|
|
|
|
|
Other
Costs
|
2,965
|
|
|
1,508
|
|
|
1,457
|
|
Depreciation,
Depletion and Amortization
|
544
|
|
|
544
|
|
|
—
|
|
Total Other
Costs
|
3,509
|
|
|
2,052
|
|
|
1,457
|
|
Freight
Expense
|
5,451
|
|
|
2,407
|
|
|
3,044
|
|
Selling, General
and Administrative Expenses
|
4,283
|
|
|
2,660
|
|
|
1,623
|
|
Interest
Expense
|
2,404
|
|
|
2,223
|
|
|
181
|
|
Total
Costs
|
74,650
|
|
|
63,413
|
|
|
11,237
|
|
Net
Income
|
$
|
3,614
|
|
|
$
|
6,401
|
|
|
$
|
(2,787)
|
|
|
|
|
|
|
|
Limited Partner
Units Outstanding - Basic
|
23,339,457
|
|
|
23,226,712
|
|
|
113
|
|
Limited Partner
Units Outstanding - Diluted
|
23,501,164
|
|
|
23,469,615
|
|
|
32
|
|
|
|
|
|
|
|
Net Income
Allocable to Limited Partner Units
|
$
|
1,555
|
|
|
$
|
4,922
|
|
|
$
|
(3,367)
|
|
|
|
|
|
|
|
Net Income per
Limited Partner Unit - Basic
|
$
|
0.07
|
|
|
$
|
0.21
|
|
|
$
|
(0.14)
|
|
Net Income per
Limited Partner Unit - Diluted
|
$
|
0.07
|
|
|
$
|
0.21
|
|
|
$
|
(0.14)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
18,454
|
|
|
$
|
19,505
|
|
|
$
|
(1,051)
|
|
|
|
|
|
|
|
Distributable Cash
Flow
|
$
|
5,748
|
|
|
$
|
6,856
|
|
|
$
|
(1,108)
|
|
|
|
|
|
|
|
CNX COAL RESOURCES
LP
|
CONSOLIDATED
BALANCE SHEETS
|
(Dollars in
thousands)
|
|
(unaudited)
|
|
ASSETS
|
September 30,
2017
|
|
December 31,
2016
|
Current
Assets:
|
|
|
|
Cash
|
$
|
3,574
|
|
|
$
|
9,785
|
|
Trade
Receivables
|
23,808
|
|
|
23,418
|
|
Other
Receivables
|
454
|
|
|
515
|
|
Inventories
|
11,948
|
|
|
11,491
|
|
Prepaid
Expenses
|
5,065
|
|
|
3,512
|
|
Total Current
Assets
|
44,849
|
|
|
48,721
|
|
Property, Plant and
Equipment:
|
|
|
|
Property, Plant and
Equipment
|
890,170
|
|
|
876,690
|
|
Less—Accumulated
Depreciation, Depletion and Amortization
|
472,717
|
|
|
442,178
|
|
Total Property,
Plant and Equipment—Net
|
417,453
|
|
|
434,512
|
|
Other
Assets:
|
|
|
|
Other
|
19,247
|
|
|
21,063
|
|
Total Other
Assets
|
19,247
|
|
|
21,063
|
|
TOTAL
ASSETS
|
$
|
481,549
|
|
|
$
|
504,296
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable
|
$
|
19,872
|
|
|
$
|
18,797
|
|
Accounts
Payable—Related Party
|
1,906
|
|
|
1,666
|
|
Other Accrued
Liabilities
|
41,851
|
|
|
44,318
|
|
Total Current
Liabilities
|
63,629
|
|
|
64,781
|
|
Long-Term
Debt:
|
|
|
|
Revolver, Net of Debt
Issuance and Financing Fees
|
185,517
|
|
|
197,843
|
|
Capital Lease
Obligations
|
89
|
|
|
146
|
|
Total Long-Term
Debt
|
185,606
|
|
|
197,989
|
|
Other
Liabilities:
|
|
|
|
Pneumoconiosis
Benefits
|
2,891
|
|
|
2,057
|
|
Workers'
Compensation
|
3,263
|
|
|
3,090
|
|
Asset Retirement
Obligations
|
9,495
|
|
|
9,346
|
|
Other
|
427
|
|
|
463
|
|
Total Other
Liabilities
|
16,076
|
|
|
14,956
|
|
TOTAL
LIABILITIES
|
265,311
|
|
|
277,726
|
|
Partners'
Capital:
|
|
|
|
Class A Preferred
Units (3,956,496 Units Outstanding at September 30, 2017 and
December 31,
2016)
|
69,151
|
|
|
69,151
|
|
Common Units
(11,747,584 Units Outstanding at September 30, 2017; 11,618,456
Units
Outstanding at December 31, 2016)
|
137,366
|
|
|
140,967
|
|
Subordinated Units
(11,611,067 Units Outstanding at September 30, 2017 and December
31,
2016)
|
(13,985)
|
|
|
(7,631)
|
|
General Partner
Interest
|
12,015
|
|
|
12,274
|
|
Accumulated Other
Comprehensive Income
|
11,691
|
|
|
11,809
|
|
Total Partners'
Capital
|
216,238
|
|
|
226,570
|
|
TOTAL LIABILITIES
AND PARTNERS' CAPITAL
|
$
|
481,549
|
|
|
$
|
504,296
|
|
CNX COAL RESOURCES
LP
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
2017
|
|
2016
|
Cash Flows from
Operating Activities:
|
|
|
|
Net Income
|
$
|
3,614
|
|
|
$
|
6,401
|
|
Adjustments to
Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|
|
|
Depreciation,
Depletion and Amortization
|
10,352
|
|
|
10,592
|
|
Gain on Sale of
Assets
|
(6)
|
|
|
(2)
|
|
Unit Based
Compensation
|
2,084
|
|
|
289
|
|
Other Adjustments to
Net Income
|
224
|
|
|
223
|
|
Changes in Operating
Assets:
|
|
|
|
Accounts and Notes
Receivable
|
2,915
|
|
|
1,599
|
|
Inventories
|
2,059
|
|
|
(464)
|
|
Prepaid
Expenses
|
(2,385)
|
|
|
(1,414)
|
|
Changes in Other
Assets
|
(141)
|
|
|
180
|
|
Changes in Operating
Liabilities:
|
|
|
|
Accounts
Payable
|
3,832
|
|
|
3,821
|
|
Accounts Payable -
Related Party
|
(290)
|
|
|
85
|
|
Other Operating
Liabilities
|
(2,548)
|
|
|
917
|
|
Changes in Other
Liabilities
|
319
|
|
|
262
|
|
Net Cash Provided by
Operating Activities
|
20,029
|
|
|
22,489
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
Expenditures
|
(6,789)
|
|
|
(3,068)
|
|
PA Mining
Acquisition
|
—
|
|
|
(21,500)
|
|
Proceeds from Sales
of Assets
|
—
|
|
|
2
|
|
Net Cash Used in
Investing Activities
|
(6,789)
|
|
|
(24,566)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Payments on
Miscellaneous Borrowings
|
(22)
|
|
|
(21)
|
|
(Payments on)
Proceeds from Revolver
|
(2,000)
|
|
|
10,000
|
|
Payments for
Unitholder Distributions
|
(14,050)
|
|
|
(6,193)
|
|
Tax Cost from
Unit-Based Compensation
|
(202)
|
|
|
—
|
|
Net Change in Parent
Advances
|
—
|
|
|
(4,358)
|
|
Net Cash Used in
Financing Activities
|
(16,274)
|
|
|
(572)
|
|
Net Decrease in
Cash
|
(3,034)
|
|
|
(2,649)
|
|
Cash at Beginning of
Period
|
6,608
|
|
|
8,963
|
|
Cash at End of
Period
|
$
|
3,574
|
|
|
$
|
6,314
|
|
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SOURCE CNX Coal Resources LP