0001710366false--12-31Q3202319318200017103662023-01-012023-09-3000017103662023-10-25xbrli:shares0001710366ceix:CoalRevenueMember2023-07-012023-09-30iso4217:USD0001710366ceix:CoalRevenueMember2022-07-012022-09-300001710366ceix:CoalRevenueMember2023-01-012023-09-300001710366ceix:CoalRevenueMember2022-01-012022-09-300001710366ceix:TerminalRevenueMember2023-07-012023-09-300001710366ceix:TerminalRevenueMember2022-07-012022-09-300001710366ceix:TerminalRevenueMember2023-01-012023-09-300001710366ceix:TerminalRevenueMember2022-01-012022-09-300001710366ceix:FreightRevenueMember2023-07-012023-09-300001710366ceix:FreightRevenueMember2022-07-012022-09-300001710366ceix:FreightRevenueMember2023-01-012023-09-300001710366ceix:FreightRevenueMember2022-01-012022-09-3000017103662023-07-012023-09-3000017103662022-07-012022-09-3000017103662022-01-012022-09-30iso4217:USDxbrli:shares00017103662023-09-3000017103662022-12-310001710366us-gaap:CommonStockMember2022-12-310001710366us-gaap:AdditionalPaidInCapitalMember2022-12-310001710366us-gaap:RetainedEarningsMember2022-12-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001710366us-gaap:RetainedEarningsMember2023-01-012023-03-3100017103662023-01-012023-03-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001710366us-gaap:CommonStockMember2023-01-012023-03-310001710366us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001710366us-gaap:CommonStockMember2023-03-310001710366us-gaap:AdditionalPaidInCapitalMember2023-03-310001710366us-gaap:RetainedEarningsMember2023-03-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100017103662023-03-310001710366us-gaap:RetainedEarningsMember2023-04-012023-06-3000017103662023-04-012023-06-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001710366us-gaap:CommonStockMember2023-04-012023-06-300001710366us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001710366us-gaap:CommonStockMember2023-06-300001710366us-gaap:AdditionalPaidInCapitalMember2023-06-300001710366us-gaap:RetainedEarningsMember2023-06-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000017103662023-06-300001710366us-gaap:RetainedEarningsMember2023-07-012023-09-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001710366us-gaap:CommonStockMember2023-07-012023-09-300001710366us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001710366us-gaap:CommonStockMember2023-09-300001710366us-gaap:AdditionalPaidInCapitalMember2023-09-300001710366us-gaap:RetainedEarningsMember2023-09-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001710366us-gaap:CommonStockMember2021-12-310001710366us-gaap:AdditionalPaidInCapitalMember2021-12-310001710366us-gaap:RetainedEarningsMember2021-12-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100017103662021-12-310001710366us-gaap:RetainedEarningsMember2022-01-012022-03-3100017103662022-01-012022-03-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001710366us-gaap:CommonStockMember2022-01-012022-03-310001710366us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001710366us-gaap:CommonStockMember2022-03-310001710366us-gaap:AdditionalPaidInCapitalMember2022-03-310001710366us-gaap:RetainedEarningsMember2022-03-310001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100017103662022-03-310001710366us-gaap:RetainedEarningsMember2022-04-012022-06-3000017103662022-04-012022-06-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001710366us-gaap:CommonStockMember2022-04-012022-06-300001710366us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001710366us-gaap:CommonStockMember2022-06-300001710366us-gaap:AdditionalPaidInCapitalMember2022-06-300001710366us-gaap:RetainedEarningsMember2022-06-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000017103662022-06-300001710366us-gaap:RetainedEarningsMember2022-07-012022-09-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001710366us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001710366us-gaap:CommonStockMember2022-09-300001710366us-gaap:AdditionalPaidInCapitalMember2022-09-300001710366us-gaap:RetainedEarningsMember2022-09-300001710366us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-3000017103662022-09-300001710366ceix:TermLoanAFacilityMember2023-01-012023-09-300001710366ceix:TermLoanAFacilityMember2022-01-012022-09-300001710366ceix:TermLoanBFacilityMember2023-01-012023-09-300001710366ceix:TermLoanBFacilityMember2022-01-012022-09-300001710366ceix:SeniorSecuredSecondLienNotesDue2025Member2023-01-012023-09-300001710366ceix:SeniorSecuredSecondLienNotesDue2025Member2022-01-012022-09-300001710366us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001710366us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001710366us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001710366us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001710366us-gaap:PerformanceSharesMember2023-07-012023-09-300001710366us-gaap:PerformanceSharesMember2022-07-012022-09-300001710366us-gaap:PerformanceSharesMember2023-01-012023-09-300001710366us-gaap:PerformanceSharesMember2022-01-012022-09-300001710366ceix:DomesticCoalRevenueMemberceix:PowerGenerationMember2023-07-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:PowerGenerationMember2023-07-012023-09-300001710366ceix:PowerGenerationMember2023-07-012023-09-300001710366ceix:IndustrialMemberceix:DomesticCoalRevenueMember2023-07-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:IndustrialMember2023-07-012023-09-300001710366ceix:IndustrialMember2023-07-012023-09-300001710366ceix:DomesticCoalRevenueMemberceix:MetallurgicalMember2023-07-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:MetallurgicalMember2023-07-012023-09-300001710366ceix:MetallurgicalMember2023-07-012023-09-300001710366ceix:DomesticCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2023-07-012023-09-300001710366ceix:ExportCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2023-07-012023-09-300001710366us-gaap:PublicUtilitiesInventoryCoalMember2023-07-012023-09-300001710366ceix:DomesticCoalRevenueMemberceix:PowerGenerationMember2022-07-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:PowerGenerationMember2022-07-012022-09-300001710366ceix:PowerGenerationMember2022-07-012022-09-300001710366ceix:IndustrialMemberceix:DomesticCoalRevenueMember2022-07-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:IndustrialMember2022-07-012022-09-300001710366ceix:IndustrialMember2022-07-012022-09-300001710366ceix:DomesticCoalRevenueMemberceix:MetallurgicalMember2022-07-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:MetallurgicalMember2022-07-012022-09-300001710366ceix:MetallurgicalMember2022-07-012022-09-300001710366ceix:DomesticCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2022-07-012022-09-300001710366ceix:ExportCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2022-07-012022-09-300001710366us-gaap:PublicUtilitiesInventoryCoalMember2022-07-012022-09-300001710366ceix:DomesticCoalRevenueMemberceix:PowerGenerationMember2023-01-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:PowerGenerationMember2023-01-012023-09-300001710366ceix:PowerGenerationMember2023-01-012023-09-300001710366ceix:IndustrialMemberceix:DomesticCoalRevenueMember2023-01-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:IndustrialMember2023-01-012023-09-300001710366ceix:IndustrialMember2023-01-012023-09-300001710366ceix:DomesticCoalRevenueMemberceix:MetallurgicalMember2023-01-012023-09-300001710366ceix:ExportCoalRevenueMemberceix:MetallurgicalMember2023-01-012023-09-300001710366ceix:MetallurgicalMember2023-01-012023-09-300001710366ceix:DomesticCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2023-01-012023-09-300001710366ceix:ExportCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2023-01-012023-09-300001710366us-gaap:PublicUtilitiesInventoryCoalMember2023-01-012023-09-300001710366ceix:DomesticCoalRevenueMemberceix:PowerGenerationMember2022-01-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:PowerGenerationMember2022-01-012022-09-300001710366ceix:PowerGenerationMember2022-01-012022-09-300001710366ceix:IndustrialMemberceix:DomesticCoalRevenueMember2022-01-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:IndustrialMember2022-01-012022-09-300001710366ceix:IndustrialMember2022-01-012022-09-300001710366ceix:DomesticCoalRevenueMemberceix:MetallurgicalMember2022-01-012022-09-300001710366ceix:ExportCoalRevenueMemberceix:MetallurgicalMember2022-01-012022-09-300001710366ceix:MetallurgicalMember2022-01-012022-09-300001710366ceix:DomesticCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2022-01-012022-09-300001710366ceix:ExportCoalRevenueMemberus-gaap:PublicUtilitiesInventoryCoalMember2022-01-012022-09-300001710366us-gaap:PublicUtilitiesInventoryCoalMember2022-01-012022-09-300001710366us-gaap:PublicUtilitiesInventoryCoalMember2022-12-310001710366us-gaap:PublicUtilitiesInventoryCoalMember2023-09-300001710366ceix:TerminalRevenueMember2022-12-310001710366ceix:TerminalRevenueMember2023-09-300001710366us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300001710366us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001710366us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300001710366us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300001710366us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-07-012023-09-300001710366us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300001710366us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-09-300001710366us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-09-300001710366ceix:CoalWorkersPneumoconiosisMember2023-07-012023-09-300001710366ceix:CoalWorkersPneumoconiosisMember2022-07-012022-09-300001710366ceix:CoalWorkersPneumoconiosisMember2023-01-012023-09-300001710366ceix:CoalWorkersPneumoconiosisMember2022-01-012022-09-300001710366ceix:WorkersCompensationMember2023-07-012023-09-300001710366ceix:WorkersCompensationMember2022-07-012022-09-300001710366ceix:WorkersCompensationMember2023-01-012023-09-300001710366ceix:WorkersCompensationMember2022-01-012022-09-30xbrli:pure0001710366us-gaap:USTreasurySecuritiesMember2023-09-300001710366us-gaap:TradeAccountsReceivableMember2022-12-310001710366ceix:OtherNontradeContractualArrangementsMember2022-12-310001710366us-gaap:TradeAccountsReceivableMember2023-01-012023-09-300001710366ceix:OtherNontradeContractualArrangementsMember2023-01-012023-09-300001710366us-gaap:TradeAccountsReceivableMember2023-09-300001710366ceix:OtherNontradeContractualArrangementsMember2023-09-300001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2023-09-300001710366srt:MinimumMemberceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2023-01-012023-09-300001710366srt:MaximumMemberceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2023-01-012023-09-300001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2023-01-012023-09-300001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2022-12-310001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2023-07-012023-09-300001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2022-07-012022-09-300001710366ceix:AccountsReceivableSecuritizationFacilityMemberus-gaap:LineOfCreditMember2022-01-012022-09-300001710366ceix:CoalAndOtherPlantAndEquipmentMember2023-09-300001710366ceix:CoalAndOtherPlantAndEquipmentMember2022-12-310001710366us-gaap:MiningPropertiesAndMineralRightsMember2023-09-300001710366us-gaap:MiningPropertiesAndMineralRightsMember2022-12-310001710366ceix:AirshaftsMember2023-09-300001710366ceix:AirshaftsMember2022-12-310001710366us-gaap:MineDevelopmentMember2023-09-300001710366us-gaap:MineDevelopmentMember2022-12-310001710366ceix:CoalAdvanceMiningRoyaltiesMember2023-09-300001710366ceix:CoalAdvanceMiningRoyaltiesMember2022-12-310001710366ceix:MedcoRevenueBondsInSeriesDueSeptember2025At575Member2023-09-300001710366ceix:MedcoRevenueBondsInSeriesDueSeptember2025At575Member2022-12-310001710366ceix:PEDFASolidWasteDisposalRevenueBondsMember2022-12-310001710366ceix:PEDFASolidWasteDisposalRevenueBondsMember2023-09-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2023-09-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2022-12-310001710366us-gaap:LoansPayableMemberceix:TermLoanBFacilityMember2022-12-310001710366us-gaap:LoansPayableMemberceix:TermLoanBFacilityMember2023-09-300001710366ceix:OtherAssetBackedFinancingMember2023-09-300001710366ceix:OtherAssetBackedFinancingMember2022-12-310001710366ceix:AdvanceRoyaltyCommitmentsMember2022-12-310001710366ceix:AdvanceRoyaltyCommitmentsMember2023-09-300001710366us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2023-09-300001710366us-gaap:LoansPayableMemberus-gaap:RevolvingCreditFacilityMember2022-12-310001710366us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-03-280001710366us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-06-30utr:T0001710366srt:MaximumMemberus-gaap:LineOfCreditMemberceix:RevolvingCreditFacilityAndTLAFacilityMember2022-09-300001710366us-gaap:LineOfCreditMemberceix:RevolvingCreditFacilityAndTLAFacilityMember2022-09-300001710366us-gaap:LineOfCreditMemberceix:RevolvingCreditFacilityAndTLAFacilityMember2023-09-300001710366us-gaap:RevolvingCreditFacilityMember2023-09-300001710366us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-09-300001710366us-gaap:RevolvingCreditFacilityMember2022-12-310001710366us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-12-310001710366srt:NonGuarantorSubsidiariesMember2023-09-300001710366srt:NonGuarantorSubsidiariesMember2022-12-310001710366srt:NonGuarantorSubsidiariesMember2023-07-012023-09-300001710366srt:NonGuarantorSubsidiariesMember2022-07-012022-09-300001710366srt:NonGuarantorSubsidiariesMember2023-01-012023-09-300001710366srt:NonGuarantorSubsidiariesMember2022-01-012022-09-300001710366us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2017-11-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2017-11-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2023-01-012023-09-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2022-01-012022-09-300001710366us-gaap:SeniorNotesMemberceix:SeniorSecuredSecondLienNotesDue2025Member2022-09-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsMember2021-04-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsMember2021-04-012021-04-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsDueApril2028Memberceix:RestrictedCashMember2023-07-012023-09-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsDueApril2028Memberceix:RestrictedCashMember2023-01-012023-09-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsDueApril2028Memberceix:RestrictedCashMember2022-07-012022-09-300001710366ceix:PEDFASolidWasteDisposalRevenueBondsDueApril2028Memberceix:RestrictedCashMember2022-01-012022-09-300001710366ceix:FitzwaterLitigationMember2023-01-012023-09-30ceix:plaintiff0001710366us-gaap:PendingLitigationMemberceix:CaseyLitigationMember2017-08-232017-08-230001710366ceix:UnitedMineWorkersOfAmerica1992BenefitPlanLitigationMembersrt:MinimumMemberus-gaap:PendingLitigationMember2023-09-300001710366srt:MaximumMemberceix:UnitedMineWorkersOfAmerica1992BenefitPlanLitigationMemberus-gaap:PendingLitigationMember2023-09-300001710366ceix:EmployeeRelatedCommitmentMemberus-gaap:StandbyLettersOfCreditMember2023-09-300001710366ceix:EnvironmentalCommitmentMemberus-gaap:StandbyLettersOfCreditMember2023-09-300001710366ceix:OtherCommitmentMemberus-gaap:StandbyLettersOfCreditMember2023-09-300001710366us-gaap:StandbyLettersOfCreditMember2023-09-300001710366ceix:EmployeeRelatedCommitmentMemberus-gaap:SuretyBondMember2023-09-300001710366ceix:EnvironmentalCommitmentMemberus-gaap:SuretyBondMember2023-09-300001710366us-gaap:SuretyBondMemberceix:OtherCommitmentMember2023-09-300001710366us-gaap:SuretyBondMember2023-09-300001710366us-gaap:CoalContractMember2023-09-300001710366us-gaap:CoalContractMember2022-12-310001710366us-gaap:CoalContractMember2022-07-012022-09-300001710366us-gaap:CoalContractMember2022-01-012022-09-300001710366us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-09-300001710366us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001710366us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001710366us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001710366us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001710366us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001710366us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-09-300001710366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-09-300001710366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-09-300001710366us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-12-310001710366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-12-310001710366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2022-12-310001710366us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300001710366us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300001710366us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001710366us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-31ceix:segment0001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:CoalRevenueMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:CoalRevenueMember2023-07-012023-09-300001710366ceix:CorporateAndReconcilingItemsMemberceix:CoalRevenueMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:TerminalRevenueMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:TerminalRevenueMember2023-07-012023-09-300001710366ceix:TerminalRevenueMemberceix:CorporateAndReconcilingItemsMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:FreightRevenueMemberceix:PennsylvaniaMiningComplexMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:FreightRevenueMember2023-07-012023-09-300001710366ceix:FreightRevenueMemberceix:CorporateAndReconcilingItemsMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2023-07-012023-09-300001710366ceix:CorporateAndReconcilingItemsMember2023-07-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2023-09-300001710366ceix:CorporateAndReconcilingItemsMember2023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:CoalRevenueMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:CoalRevenueMember2022-07-012022-09-300001710366ceix:CorporateAndReconcilingItemsMemberceix:CoalRevenueMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:TerminalRevenueMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:TerminalRevenueMember2022-07-012022-09-300001710366ceix:TerminalRevenueMemberceix:CorporateAndReconcilingItemsMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:FreightRevenueMemberceix:PennsylvaniaMiningComplexMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:FreightRevenueMember2022-07-012022-09-300001710366ceix:FreightRevenueMemberceix:CorporateAndReconcilingItemsMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2022-07-012022-09-300001710366ceix:CorporateAndReconcilingItemsMember2022-07-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2022-09-300001710366ceix:CorporateAndReconcilingItemsMember2022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:CoalRevenueMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:CoalRevenueMember2023-01-012023-09-300001710366ceix:CorporateAndReconcilingItemsMemberceix:CoalRevenueMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:TerminalRevenueMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:TerminalRevenueMember2023-01-012023-09-300001710366ceix:TerminalRevenueMemberceix:CorporateAndReconcilingItemsMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:FreightRevenueMemberceix:PennsylvaniaMiningComplexMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:FreightRevenueMember2023-01-012023-09-300001710366ceix:FreightRevenueMemberceix:CorporateAndReconcilingItemsMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2023-01-012023-09-300001710366ceix:CorporateAndReconcilingItemsMember2023-01-012023-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:CoalRevenueMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:CoalRevenueMember2022-01-012022-09-300001710366ceix:CorporateAndReconcilingItemsMemberceix:CoalRevenueMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMemberceix:TerminalRevenueMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:TerminalRevenueMember2022-01-012022-09-300001710366ceix:TerminalRevenueMemberceix:CorporateAndReconcilingItemsMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:FreightRevenueMemberceix:PennsylvaniaMiningComplexMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMemberceix:FreightRevenueMember2022-01-012022-09-300001710366ceix:FreightRevenueMemberceix:CorporateAndReconcilingItemsMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:PennsylvaniaMiningComplexMember2022-01-012022-09-300001710366us-gaap:OperatingSegmentsMemberceix:ConsolMarineTerminalMember2022-01-012022-09-300001710366ceix:CorporateAndReconcilingItemsMember2022-01-012022-09-300001710366us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberceix:CustomerAMember2023-07-012023-09-300001710366us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberceix:CustomerAMember2023-01-012023-09-300001710366ceix:CustomerBMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001710366ceix:CustomerBMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001710366us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberceix:CustomerCMember2022-07-012022-09-300001710366us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberceix:CustomerCMember2022-01-012022-09-300001710366us-gaap:SalesRevenueNetMemberceix:CustomerDMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001710366us-gaap:SalesRevenueNetMemberceix:CustomerDMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-3000017103662023-04-300001710366ceix:JamesABrockMember2023-01-012023-09-300001710366ceix:JamesABrockMember2023-07-012023-09-300001710366ceix:JamesABrockMember2023-09-300001710366ceix:MarthaAWiegandMember2023-01-012023-09-300001710366ceix:MarthaAWiegandMember2023-07-012023-09-300001710366ceix:MarthaAWiegandMember2023-09-30

(Mark One)

For the quarterly period ended September 30, 2023

For the transition period from ______ to ______

Commission file number: 001-38147

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

CONSOL Energy Inc. had 31,009,862 shares of common stock, $0.01 par value, outstanding at October 25, 2023.

•“CONSOL Energy,” “we,” “our,” “us,” “our Company” and “the Company” refer to CONSOL Energy Inc. and its subsidiaries;

•“Btu” means one British thermal unit;

•“CONSOL Marine Terminal” refers to the Company's terminal operations located at the Port of Baltimore, Maryland;

•“former parent” refers to CNX Resources Corporation and its consolidated subsidiaries;

•“Greenfield Reserves and Resources” means those undeveloped reserves and resources owned by the Company in the Northern Appalachian, Central Appalachian and Illinois basins that are not associated with the Pennsylvania Mining Complex or the Itmann Mining Complex;

•“Itmann Mining Complex” refers to the Company's Itmann No. 5 metallurgical coal mine and coal preparation plant located in Wyoming County, West Virginia, and surrounding reserves to be processed and sold through the Itmann Mining Complex coal preparation plant; and

•“Pennsylvania Mining Complex” or “PAMC” refers to the Bailey, Enlow Fork and Harvey coal mines, the Central Preparation Plant, and related coal reserves, assets and operations located in southwestern Pennsylvania and northern West Virginia.

			Three Months Ended September 30,												Nine Months Ended September 30,
Revenue and Other Income:			2023						2022						2023						2022
Coal Revenue			$	449,618					$	472,558					$	1,574,096					$	1,481,668
Terminal Revenue			22,676						14,840						80,755						58,016
Freight Revenue			68,372						42,619						217,435						131,419
Loss on Commodity Derivatives, net			—						(65)						—						(256,571)
Miscellaneous Other Income			27,852						5,138						40,070						17,160
Gain on Sale of Assets			1,346						26,548						7,082						33,094
Total Revenue and Other Income			569,864						561,638						1,919,438						1,464,786
Costs and Expenses:
Operating and Other Costs			276,323						229,669						813,546						692,968
Depreciation, Depletion and Amortization			58,792						54,773						182,871						168,607
Freight Expense			68,372						42,619						217,435						131,419
General and Administrative Costs			37,313						30,406						79,758						94,919
Loss on Debt Extinguishment			662						674						2,725						4,361
Interest Expense			6,645						11,962						24,079						39,435
Total Costs and Expenses			448,107						370,103						1,320,414						1,131,709
Earnings Before Income Tax			121,757						191,535						599,024						333,077
Income Tax Expense			21,032						39,414						100,199						59,115
Net Income			$	100,725					$	152,121					$	498,825					$	273,962
Earnings per Share:
Total Basic Earnings per Share			$	3.15					$	4.36					$	14.97					$	7.87
Total Dilutive Earnings per Share			$	3.11					$	4.25					$	14.75					$	7.68
Dividends Declared per Common Share			$	—					$	1.00					$	2.20					$	1.00

`

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 10-01 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 and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for future periods.

The Consolidated Balance Sheet at December 31, 2022 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, 2022.

All dollar amounts discussed in these Notes to Consolidated Financial Statements are in thousands of U.S. dollars, except for per share amounts, and unless otherwise indicated.

The Consolidated Financial Statements include the accounts of CONSOL Energy Inc. and its wholly-owned and majority-owned and/or controlled subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.

In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05 - Business Combinations—Joint Venture Formations (Subtopic 805-60). The amendments in this update address the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the amendments are to (1) provide decision-useful information to investors and other allocators of capital in a joint venture's financial statements and (2) reduce diversity in practice. The amendments in this update do not amend the definition of a joint venture, the accounting by an equity method investor for its investment in a joint venture, or the accounting by a joint venture for contributions received after its formation. The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Existing joint ventures may elect to apply the guidance retrospectively. 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 March 2023, the FASB issued ASU 2023-02 - Investments—Equity Method and Joint Ventures (Topic 323). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The amendments in this update apply to all reporting entities that hold (1) tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or (2) an investment in a low-income-housing tax credit (LIHTC) structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from Subtopic 323-740, Investments—Equity Method and Joint Ventures—Income Taxes, has been applied. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. 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.

Basic earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average number of shares outstanding is 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, as applicable, 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:

The computations for basic and dilutive earnings per share are as follows:

As of September 30, 2023, CONSOL Energy has 500,000 shares of preferred stock authorized, none of which are issued or outstanding.

Certain amounts in prior periods have been reclassified to conform with the report classifications of the current period. These reclassifications had no effect on previously reported total assets, stockholders' equity, net income or cash flows from operating activities.

The following tables disaggregate CONSOL Energy's revenue from contracts with customers by product type and market:

The Company has disaggregated its coal revenue, derived from the PAMC and the Itmann Mining Complex, between domestic and export revenues, as well as industrial, power generation and metallurgical markets. Domestic coal revenue tends to be derived from contracts that typically have a term of one year or longer, and the pricing is typically fixed. Historically, export coal revenue tended to be derived from spot or shorter-term contracts with pricing determined closer to the time of shipment or based on a market index; however, the Company has secured several long-term export contracts with varying pricing arrangements. Coal revenue derived from the Itmann Mining Complex consists primarily of metallurgical coal sales, while coal revenue derived from the PAMC services the industrial, power generation and metallurgical markets due to the nature of its coal quality characteristics.

CONSOL Energy's coal revenue is recognized when the performance obligation has been satisfied, and the corresponding transaction price has been determined. Generally, title passes when coal is loaded at the coal preparation facilities, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed or determinable based upon either fixed forward pricing or pricing derived from established indices and adjusted for nominal quality characteristics. 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 and typically do not 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 and per ton price fluctuations based on certain coal sales price indices. 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. The Company has determined that each ton of coal represents a separate and distinct performance obligation. 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.

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. At September 30, 2023 and December 31, 2022, the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three and nine months ended September 30, 2023 and 2022, the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any coal revenue in the current period that is not a result of current period performance.

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 earned 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 September 30, 2023 and December 31, 2022, the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three and nine months ended September 30, 2023 and 2022, 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.

Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its coal preparation plants. 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 to the coal passes to the customer.

Contract assets, when present, 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. Credit is extended based on an evaluation of a customer's financial condition and a customer's ability to perform its obligations. 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 goods passes to the customer, or over time when services are provided.

The components of Net Periodic Benefit (Credit) Cost are as follows:

(Credits) expenses related to pension and other post-employment benefits are reflected in Operating and Other Costs in the Consolidated Statements of Income. Amounts reclassified out of accumulated other comprehensive income are reflected in Operating and Other Costs in the Consolidated Statements of Income.

The components of Net Periodic Benefit Cost are as follows:

Expenses related to CWP and workers’ compensation are reflected in Operating and Other Costs in the Consolidated Statements of Income. Amounts reclassified out of accumulated other comprehensive income are reflected in Operating and Other Costs in the Consolidated Statements of Income.

The Company recorded its provision for income taxes for the three and nine months ended September 30, 2023 of $21,032, or 17.3%, and $100,199, or 16.7%, respectively, of earnings before income taxes, based on its annual estimated income tax rate adjusted for discrete items. The effective tax rate for the three and nine months ended September 30, 2023 differs from the U.S. federal statutory rate of 21%, primarily due to the tax benefit for excess percentage depletion and foreign derived intangible income. These tax provision amounts also include discrete tax adjustments primarily related to equity compensation.

The provision for income taxes for the three and nine months ended September 30, 2022 of $39,414, or 20.6%, and $59,115, or 17.8%, respectively, of earnings before income taxes was based on the Company's annual estimated income tax rate adjusted for discrete items. The effective tax rate for the three and nine months ended September 30, 2022 differed from the U.S. federal statutory rate of 21%, primarily due to the tax benefit for excess percentage depletion and foreign derived intangible income, partially offset by tax expense related to compensation. The tax provision amounts also included discrete tax adjustments primarily related to equity compensation and acquiring the remaining interest in a former equity investment.

On August 16, 2022, the President of the United States signed into law the Inflation Reduction Act of 2022. Management does not expect this legislation to have a material impact on the Company's financial statements.

The Company is subject to taxation in the United States and certain of its various states, as well as Canada and certain of its various provinces. The Company is subject to examination for the tax periods 2018 through 2022 for federal and state returns.

(1) Restricted Cash - Current is included in Other Current Assets in the accompanying Consolidated Balance Sheets. Restricted Cash - Non-current is included in Other Noncurrent Assets, net in the accompanying Consolidated Balance Sheets.

During the nine months ended September 30, 2023, the Company invested in marketable debt securities, primarily comprised of highly liquid U.S. Treasury securities. The investments are held in the custody of financial institutions. These securities are classified as available-for-sale securities and have maturity dates ranging from October 2023 through July 2024, and thus are classified as current assets.

The Company's investments in available-for-sale securities are as follows:

Available-for-sale investments are reported at fair value and any unrealized gains or losses are recognized in other comprehensive income, net of tax. The unrealized losses in the Company's portfolio at September 30, 2023 are the result of normal market fluctuations. Interest and dividends are included in net income when earned.

Trade receivables are recorded at the invoiced amount and do not bear interest. Credit is extended based on an evaluation of a customer's financial condition, the importance of the customer or market for future business and a customer's ability to perform its obligations. Trade receivable balances are monitored against approved credit terms. Credit terms are reviewed and adjusted as considered necessary based on changes to a customer's credit profile. If a customer's credit deteriorates, the Company may reduce credit risk exposure by reducing credit terms, obtaining letters of credit, obtaining credit insurance, or requiring pre-payment for shipments. Other non-trade contractual arrangements consist primarily of overriding royalty agreements and other financial arrangements between the Company and various counterparties.

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, and consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible.

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 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected.

Inventory components consist of the following:

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.

At September 30, 2023, 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. In July 2022, the securitization facility was again amended to, among other things, extend the maturity date to July 29, 2025.

Pursuant to the securitization facility, CONSOL Thermal Holdings LLC, an indirect, wholly-owned subsidiary of the Company, sells trade receivables to CONSOL Pennsylvania Coal Company LLC, a wholly-owned subsidiary of the Company. CONSOL Marine Terminals LLC, a wholly-owned subsidiary of the Company, and CONSOL Pennsylvania Coal Company LLC sell and/or contribute trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC, a wholly-owned subsidiary of the Company (the “SPV”). The SPV, in turn, pledges its interests in the receivables to PNC Bank, N.A., 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 $100,000.

Loans under the securitization facility accrue interest at a reserve-adjusted market index rate equal to the applicable term Secured Overnight Financing Rate (“SOFR”). 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 pays other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum.

At September 30, 2023, the Company's eligible accounts receivable yielded $42,049 of borrowing capacity. At September 30, 2023, the facility had no outstanding borrowings and $42,007 of letters of credit outstanding, leaving available borrowing capacity of $42. At December 31, 2022, the Company's eligible accounts receivable yielded $85,179 of borrowing capacity. At December 31, 2022, the facility had no outstanding borrowings and $83,465 of letters of credit outstanding, leaving available borrowing capacity of $1,714. Costs associated with the receivables facility totaled $323 and $1,060 for the three and nine months ended September 30, 2023, respectively, and $198 and $813 for the three and nine months ended September 30, 2022, respectively. The Company has not derecognized any receivables due to its continued involvement in the collections efforts.

Property, plant and equipment consists of the following:

Coal reserves are either owned in fee or controlled 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 September 30, 2023 and December 31, 2022, property, plant and equipment includes gross assets under finance leases of $74,507 and $90,516, respectively. Accumulated amortization for finance leases was $57,225 and $54,028 at September 30, 2023 and December 31, 2022, respectively. Amortization expense for assets under finance leases approximated $6,524 and $5,960 for the three months ended September 30, 2023 and 2022, respectively, and $20,369 and $18,058 for the nine months ended September 30, 2023 and 2022, respectively, and is included in Depreciation, Depletion and Amortization in the accompanying Consolidated Statements of Income.

* Excludes current portion of Finance Lease Obligations of $13,596 and $24,105 at September 30, 2023 and December 31, 2022, respectively.

In November 2017, CONSOL Energy entered into a revolving credit facility with PNC Bank, N.A. (the “Revolving Credit Facility”). The Revolving Credit Facility has been amended several times, the most recent of which occurred in June 2023. This amendment increased the available revolving commitments from $260,000 to $355,000 and provides for the Company's ability to increase the revolving commitments or issue term loans in an additional amount not to exceed $45,000 and up to an aggregate total amount of $400,000. The maturity date of the Revolving Credit Facility is July 18, 2026.

Borrowings under the Company's Revolving Credit Facility bear interest at a floating rate that is, at the Company's option, either (i) SOFR plus the applicable SOFR adjustment (as defined therein) depending on the applicable interest period plus an applicable margin or (ii) an alternate base rate plus an applicable margin. The applicable margin for the Revolving Credit Facility depends on the total net leverage ratio. Obligations under the Revolving Credit Facility are guaranteed by (i) all owners of 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. 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 interest in the PAMC, (ii) the equity interests in PA Mining Complex LP held by the Company, (iii) the CONSOL Marine Terminal, (iv) the Itmann Mining Complex and (v) the 1.4 billion tons of Greenfield Reserves and Resources.

The Revolving Credit Facility contains a number of customary affirmative covenants and 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 Revolving Credit Facility also includes covenants relating to (i) a maximum first lien gross leverage ratio, (ii) a maximum total net leverage ratio, and (iii) a minimum fixed charge coverage ratio. The maximum first lien gross leverage ratio is calculated as the ratio of Consolidated First Lien Debt to Consolidated EBITDA. 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 and gains and losses on debt extinguishment. The maximum total net leverage ratio is calculated as the ratio of Consolidated Indebtedness, minus Cash on Hand, to Consolidated EBITDA. The minimum fixed charge coverage ratio is calculated as the ratio of Consolidated EBITDA to Consolidated Fixed Charges. Consolidated Fixed Charges, as used in the covenant calculation, include cash interest payments, cash payments for income taxes, scheduled debt repayments, Maintenance Capital Expenditures and cash payments related to legacy employee liabilities to the extent in excess of amounts accrued in the calculation of Consolidated EBITDA. Under the Revolving Credit Facility, the maximum first lien gross leverage ratio shall be 1.50 to 1.00, the maximum total net leverage ratio shall be 2.50 to 1.00 and the minimum fixed charge coverage ratio shall be 1.10 to 1.00.

The Company's first lien gross leverage ratio was 0.02 to 1.00 at September 30, 2023. The Company's total net leverage ratio was (0.05) to 1.00 at September 30, 2023. The Company's fixed charge coverage ratio was 3.53 to 1.00 at September 30, 2023. The Company was in compliance with all of its financial covenants under the Revolving Credit Facility as of September 30, 2023.

At September 30, 2023, the Revolving Credit Facility had no borrowings outstanding and $139,195 of letters of credit outstanding, leaving $215,805 of unused capacity. At December 31, 2022, the Revolving Credit Facility had no borrowings outstanding and $103,029 of letters of credit outstanding, leaving $296,971 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.

The SPV is a non-guarantor subsidiary of the Revolving Credit Facility, and the SPV holds the assets pledged to the lender in the securitization facility. The SPV had total assets of $148,200 and $158,877, comprised mainly of $147,664 and $158,127 trade receivables, net, at September 30, 2023 and December 31, 2022, respectively. Net income attributable to the SPV was $235 and $6,400 for the three months ended September 30, 2023 and 2022, respectively, and $4,843 and $10,492 for the nine months ended September 30, 2023 and 2022, respectively, which primarily reflected intercompany fees related to purchasing the receivables, which are eliminated in the Consolidated Financial Statements contained within this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2023 and 2022, there were no borrowings or payments under the accounts receivable securitization facility. See Note 9 - Accounts Receivable Securitization for additional information.

In November 2017, CONSOL Energy issued $300,000 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 were secured by second priority liens on substantially all of the assets of the Company and the Guarantors that are pledged on a first-priority basis as collateral securing the Company’s obligations under the Revolving Credit Facility (described above), subject to certain exceptions under the Indenture.

The Indenture contained covenants that limited 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) pay or make 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 were subject to important exceptions and qualifications. If the Second Lien Notes achieved an investment grade rating from both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. and no default under the Indenture existed, many of the foregoing covenants would have terminated and ceased to apply.

During the nine months ended September 30, 2023, the Company spent $101,832 to fully redeem $99,107 of its outstanding Second Lien Notes. During the nine months ended September 30, 2022, the Company spent $26,387 to repurchase $25,000 of its outstanding Second Lien Notes. As a result of these transactions, $662 and $674 was included in Loss on Debt Extinguishment on the Consolidated Statements of Income for the three months ended September 30, 2023 and 2022, respectively, and $2,725 and $4,361 was included in Loss on Debt Extinguishment on the Consolidated Statements of Income for the nine months ended September 30, 2023 and 2022, respectively.

In April 2021, CONSOL Energy borrowed the proceeds received from the sale of tax-exempt bonds issued by the Pennsylvania Economic Development Financing Authority (“PEDFA”) in an aggregate principal amount of $75,000 (the “PEDFA Bonds”). The PEDFA Bonds bear interest at a fixed rate of 9.00% for an initial term of seven years. The PEDFA Bonds mature on April 1, 2051 but are subject to mandatory purchase by the Company on April 13, 2028, at the expiration of the initial term rate period. The PEDFA Bonds were issued pursuant to an indenture (the “PEDFA Indenture”) dated as of April 1, 2021, by and between PEDFA and Wilmington Trust, N.A., a national banking association, as trustee (the “PEDFA Notes Trustee”). PEDFA made a loan of the proceeds of the PEDFA Bonds to the Company pursuant to a Loan Agreement (the “Loan Agreement”) dated as of April 1, 2021 between PEDFA and the Company. Under the terms of the Loan Agreement, the Company agreed to make all payments of principal, interest and other amounts at any time due on the PEDFA Bonds or under the PEDFA Indenture.

PEDFA assigned its rights as lender under the Loan Agreement, excluding certain reserved rights, to the PEDFA Notes Trustee. Certain subsidiaries of the Company (the “PEDFA Notes Guarantors”) executed a Guaranty Agreement (the “Guaranty”) dated as of April 1, 2021 in favor of the PEDFA Notes Trustee, guarantying the obligations of the Company under the Loan Agreement to pay the PEDFA Bonds when and as due. The obligations of the Company under the Loan Agreement and of the PEDFA Notes Guarantors under the Guaranty are secured by second priority liens on substantially all of the assets of the Company and the PEDFA Notes Guarantors.

The Company started a capital construction project on the PAMC coarse refuse disposal area in 2017, which is now funded, in part, by the $75,000 of PEDFA Bond proceeds loaned to the Company. The Company expects to expend these funds as qualified work is completed. The Company utilized restricted cash in the amount of $8,442 and $16,313 during the three and nine months ended September 30, 2023, respectively, and $2,376 and $7,100 during the three and nine months ended September 30, 2022, respectively, for qualified expenses. Additionally, the Company had $20,320 and $35,516 in restricted cash at September 30, 2023 and December 31, 2022, respectively, associated with this financing that will be used to fund future spending on the coarse refuse disposal area.

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 September 30, 2023. 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 September 30, 2023 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 the U.S. District Court for the Southern District of West Virginia 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 to the Company 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, Plaintiffs’ supplemental motion for class certification was denied on all counts. On July 15, 2020, Plaintiffs filed an interlocutory appeal with the Fourth Circuit Court of Appeals on the Order denying class certification. The Fourth Circuit denied Plaintiffs' appeal on August 14, 2020. On October 1, 2020, the District Court entered a pretrial order setting the trial date, which was held in February 2021. No ruling has been issued by the judge. 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, the Company's Chief Administrative Officer, in the U.S. District Court for the Southern District of West Virginia 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, Plaintiffs’ supplemental motion for class certification was denied on all counts. On July 15, 2020, Plaintiffs filed an interlocutory appeal with the Fourth Circuit Court of Appeals on the Order denying class certification. The Fourth Circuit denied Plaintiffs' appeal on August 14, 2020. On October 1, 2020, the District Court entered a pretrial order setting the trial date, which was held in February 2021.

No ruling has been issued by the judge. The Company believes it has a meritorious defense and intends to vigorously defend this suit.

United Mine Workers of America 1992 Benefit Plan Litigation: In 2013, Murray Energy and its subsidiaries (“Murray”) entered into a stock purchase agreement (the “Murray sale agreement”) with the Company's former parent pursuant to which Murray acquired the stock of CCC and certain subsidiaries and certain other assets and liabilities. At the time of sale, the liabilities included certain retiree medical liabilities under the Coal Industry Retiree Health Benefit Act of 1992 (“Coal Act”) and certain federal black lung liabilities under the Black Lung Benefits Act (“BLBA”). Based upon information available, the Company estimates that the annual servicing costs of these liabilities are approximately $10 million to $20 million per year for the next ten years. The annual servicing cost would decline each year since the beneficiaries of the Coal Act consist principally of miners who retired prior to 1994. Murray filed for Chapter 11 bankruptcy in October 2019. As part of the bankruptcy proceedings, Murray unilaterally entered into a settlement with the United Mine Workers of America 1992 Benefit Plan (the “1992 Benefit Plan”) to transfer retirees in the Murray Energy Section 9711 Plan to the 1992 Benefit Plan. This was approved by the bankruptcy court on April 30, 2020. On May 2, 2020, the 1992 Benefit Plan filed an action in the United States District Court for the District of Columbia asking the court to make a determination whether the Company's former parent or the Company has any continuing retiree medical liabilities under the Coal Act (the “1992 Plan Lawsuit”). The Murray sale agreement includes indemnification by Murray with respect to the Coal Act and BLBA liabilities. In addition, the Company had agreed to indemnify its former parent relative to certain pre-separation liabilities. As of September 16, 2020, the Company entered into a settlement agreement with Murray and withdrew its claims in bankruptcy. On September 11, 2020, the Defendants in the 1992 Plan Lawsuit filed a Motion to Dismiss Plaintiffs' Second Amended Complaint which was denied by the Court on March 29, 2022. The Company will continue to vigorously defend any claims that attempt to transfer any of such liabilities directly or indirectly to the Company, including raising all applicable defenses against the 1992 Benefit Plan’s suit. With respect to this lawsuit, while a loss is possible, it is not probable and, as a result, no accrual has been recorded.

Other Matters: On July 27, 2021, the Company's former parent informed the Company that it had received a request from the United Mine Workers of America (“UMWA”) 1974 Pension Plan for information related to the facts and circumstances surrounding the former parent's 2013 sale of certain of its coal subsidiaries to Murray (the “Letter Request”). The Letter Request indicates that litigation by the UMWA 1974 Pension Plan against the Company's former parent related to potential withdrawal liabilities from the plan created by the 2019 bankruptcy of Murray is reasonably foreseeable. There has been no indication of potential claims against the Company by the UMWA 1974 Pension Plan and, at this time, no liability of the Company's former parent has been assessed.

The Company and various subsidiaries are defendants in certain other legal proceedings. 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.

The following is a summary, as of September 30, 2023, of the financial guarantees, unconditional purchase obligations and letters of credit to certain third parties. Employee-related financial guarantees have primarily been provided to support the 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, surety indemnity agreements, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments. Certain letters of credit included in the table below were issued against other commitments included in this table. 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 commitments are recorded as liabilities in the financial statements. The Company's management believes that these commitments will not have a material adverse effect on the Company's financial condition.

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.

The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted or index-priced sales of coal or to the risk of changes in the fair value of a fixed price physical sales contract. All of the Company's coal-related derivative contracts were settled as of December 31, 2022.

The Company had master netting agreements with all of its counterparties which allowed for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduced the Company's credit exposure related to these counterparties to the extent the Company had any liability to such counterparties. For classification purposes, the Company recorded the net fair value of all the positions with a given counterparty as a net asset or liability in the Consolidated Balance Sheets. The fair value of derivatives reflected in the accompanying Consolidated Balance Sheets are set forth in the table below.

			September 30, 2023												December 31, 2022
			Asset Derivatives						Liability Derivatives						Asset Derivatives						Liability Derivatives
Coal Swap Contracts			$	—					$	—					$	6,024					$	(21,166)
Effect of Counterparty Netting			—						—						(6,024)						6,024
Net Derivatives as Classified in the Consolidated Balance Sheets			$	—					$	—					$	—					$	(15,142)

The Company did not seek cash flow hedge accounting treatment for its commodity derivative financial instruments and therefore, changes in fair value were reflected in earnings throughout the terms of those instruments. During the three and nine months ended September 30, 2022, the Company settled a portion of its commodity derivatives at losses of $81,311 and $241,486, respectively. Additionally, during the three and nine months ended September 30, 2022, the Company recognized adjustments to the fair value of its commodity derivatives of ($81,246) and $15,085, respectively. These settlements and fair value adjustments were included in Loss on Commodity Derivatives, net on the accompanying Consolidated Statements of Income.

The Company classified the cash effects of its derivatives within the Cash Flows from Operating Activities section of the Consolidated Statements of Cash Flows.

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 SOFR-based discount rates and U.S. Treasury-based 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. The Company's Level 1 assets include marketable debt securities, primarily highly liquid U.S. Treasury securities.

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 SOFR-based discount rates and U.S. Treasury-based rates. The Company's Level 2 assets and liabilities include coal commodity contracts with fair values derived from quoted prices in over-the-counter markets.

Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity.

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:

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.