XML 94 R35.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Supplemental Gas Data | 12 Months Ended
--- | ---
Dec. 31, 2014
SUPPLEMENTAL GAS DATA: [Abstract] |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | Supplemental Gas Data (unaudited): The following information was prepared in accordance with the FASB's Accounting Standards Update No. 2010-03, “Extractive Activities-Oil and Gas (Topic 932).” Capitalized Costs:
|  | As of December 31,
|  | 2014 |  | 2013
Proven properties |  | $ | 1,768,007 |  |  | $ | 1,670,404 |
Unproven properties |  | 1,540,835 |  |  | 1,463,406 |
Intangible drilling costs |  | 2,798,394 |  |  | 1,937,336 |
Wells and related equipment |  | 716,748 |  |  | 688,548 |
Gathering assets |  | 1,088,238 |  |  | 1,058,008 |
Gas well plugging |  | 111,227 |  |  | 113,481 |
Total Property, Plant and Equipment |  | 8,023,449 |  |  | 6,931,183 |
Accumulated Depreciation, Depletion and Amortization |  | (1,515,983 | ) |  | (1,187,409 | )
Net Capitalized Costs |  | $ | 6,507,466 |  |  | $ | 5,743,774 |
Costs incurred for property acquisition, exploration and development (*):
|  | For the Years Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Property acquisitions |  |  |  |  |  |
Proven properties |  | $ | — |  |  | $ | — |  |  | $ | 50,005 |
Unproven properties |  | 119,597 |  |  | 260,477 |  |  | 28,634 |
Development |  | 952,733 |  |  | 629,100 |  |  | 339,608 |
Exploration |  | 45,006 |  |  | 95,413 |  |  | 130,312 |
Total |  | $ | 1,117,336 |  |  | $ | 984,990 |  |  | $ | 548,559 |
__________
(*) | Includes costs incurred whether capitalized or expensed.
Results of Operations for Producing Activities:
|  | For the Years Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Production Revenue |  | $ | 1,030,574 |  |  | $ | 740,869 |  |  | $ | 660,442 |
Royalty Interest Gas Revenue |  | 82,428 |  |  | 63,202 |  |  | 49,405 |
Purchased Gas Revenue |  | 8,999 |  |  | 6,531 |  |  | 3,316 |
Total Revenue |  | 1,122,001 |  |  | 810,602 |  |  | 713,163 |
Lifting Costs |  | 118,391 |  |  | 96,601 |  |  | 90,837 |
Ad Valorem, Severance & Other Taxes |  | 39,418 |  |  | 28,676 |  |  | 26,145 |
Gathering Costs |  | 258,110 |  |  | 201,024 |  |  | 160,579 |
Royalty Interest Gas Costs |  | 69,946 |  |  | 53,069 |  |  | 38,922 |
Direct Administrative, Selling & Other Costs |  | 55,092 |  |  | 49,092 |  |  | 47,565 |
Other Costs |  | 22,719 |  |  | 61,107 |  |  | 39,029 |
Purchased Gas Costs |  | 7,251 |  |  | 4,837 |  |  | 2,711 |
DD&A |  | 314,381 |  |  | 231,809 |  |  | 205,149 |
Total Costs |  | 885,308 |  |  | 726,215 |  |  | 610,937 |
Pre-tax Operating Income |  | 236,693 |  |  | 84,387 |  |  | 102,226 |
Income Taxes |  | 82,894 |  |  | 32,067 |  |  | 38,989 |
Results of Operations for Producing Activities excluding Corporate and Interest Costs |  | $ | 153,799 |  |  | $ | 52,320 |  |  | $ | 63,237 |
The following is production, average sales price and average production costs, excluding ad valorem and severance taxes, per unit of production:
|  | For the Years Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Production (MMcfe) |  | 235,714 |  |  | 172,380 |  |  | 156,325 |
Average gas sales price before effects of financial settlements (per Mcf) |  | $ | 4.26 |  |  | $ | 3.85 |  |  | $ | 3.00 |
Average effects of financial settlements (per Mcf) |  | $ | 0.11 |  |  | $ | 0.45 |  |  | $ | 1.22 |
Average gas sales price including effects of financial settlements (per Mcf) |  | $ | 4.37 |  |  | $ | 4.30 |  |  | $ | 4.22 |
Average lifting costs, excluding ad valorem and severance taxes (per Mcf) |  | $ | 0.50 |  |  | $ | 0.56 |  |  | $ | 0.58 |
During the years ended December 31, 2014, 2013 and 2012, we drilled 180.3, 139.8, and 95.5 net development wells, respectively. There were no net dry development wells in 2014, 2013, or 2012. During the years ended December 31, 2014, 2013 and 2012, we drilled 8.5, 5.5, and 22.0 net exploratory wells, respectively. There were no net dry exploratory wells in 2014 or 2013, and 9.5 net dry exploratory wells in 2012. At December 31, 2014, there were 52.0 net development wells and 2.5 net exploratory wells in the process of being drilled. We are committed to provide 153.5 Bcf of gas under existing sales contracts or agreements over the course of the next four years. We expect to produce sufficient quantities from existing proved developed reserves to satisfy these commitments. Most of our development wells and proved acreage are located in Virginia, West Virginia and Pennsylvania. Some leases are beyond their primary term, but these leases are extended in accordance with their terms as long as certain drilling commitments or other term commitments are satisfied. The following table sets forth, at December 31, 2014, the number of producing wells, developed acreage and undeveloped acreage:
|  | Gross |  | Net(1)
Producing Gas Wells (including gob wells) |  | 17,044 |  |  | 12,918 |
Producing Oil Wells |  | 154 |  |  | 34 |
Proved Developed Acreage |  | 537,935 |  |  | 515,439 |
Proved Undeveloped Acreage |  | 112,617 |  |  | 63,801 |
Unproved Acreage |  | 4,946,174 |  |  | 3,933,975 |
Total Acreage |  | 5,596,726 |  |  | 4,513,215 |
____________
(1) | Net acres include acreage attributable to our working interests of the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable.
Proved Oil and Gas Reserves Quantities: Annually, the preparation of gas reserves estimates are completed in accordance with CONSOL Energy's prescribed internal control procedures, which include verification of input data into a gas reserves forecasting and economic evaluation software, as well as multi-functional management review. The input data verification includes reviews of the price and cost assumptions used in the economic model to determine the reserves. Also, the production volumes are reconciled between the system used to calculate the reserves and other accounting/measurement systems. The technical employee responsible for overseeing the preparation of the reserve estimates is a petroleum engineer with over 10 years of experience in the oil and gas industry. Our 2014 gas reserves results, which are reported in the Supplemental Gas Data year ended December 31, 2014 Form 10-K, were audited by Netherland Sewell. The technical person primarily responsible for overseeing the audit of our reserves is a registered professional engineer in the state of Texas with over 15 years of experience in the oil and gas industry. The gas reserves estimates are as follows:
|  |  |  |  |  | Condensate |  | Consolidated
|  | Natural Gas |  | NGLs |  | & Crude Oil |  | Operations
|  | (MMcfe) |  | (Mbbls) |  | (Mbbls) |  | (MMcfe)
Balance December 31, 2011 (c) |  | 3,470,551 |  |  | 25 |  |  | 1,555 |  |  | 3,480,027 |
Revisions (a) |  | 243,442 |  |  | 469 |  |  | (710 | ) |  | 241,989 |
Price Changes |  | (526,608 | ) |  | — |  |  | (1 | ) |  | (526,611 | )
Extensions and Discoveries (b) |  | 873,104 |  |  | 12,992 |  |  | 553 |  |  | 954,378 |
Production |  | (155,052 | ) |  | (111 | ) |  | (100 | ) |  | (156,325 | )
Balance December 31, 2012 (c) |  | 3,905,437 |  |  | 13,375 |  |  | 1,297 |  |  | 3,993,458 |
Revisions (a) |  | 176,045 |  |  | (1,017 | ) |  | 336 |  |  | 171,953 |
Price Changes |  | 104,728 |  |  | 4 |  |  | 1 |  |  | 104,757 |
Extensions and Discoveries (b) |  | 1,567,634 |  |  | 9,623 |  |  | 1,343 |  |  | 1,633,426 |
Production |  | (168,737 | ) |  | (438 | ) |  | (170 | ) |  | (172,380 | )
Balance December 31, 2013 (c) |  | 5,585,107 |  |  | 21,547 |  |  | 2,807 |  |  | 5,731,214 |
Revisions (d) |  | (46,560 | ) |  | 40,363 |  |  | 3,756 |  |  | 218,168 |
Price Changes |  | 15,512 |  |  | — |  |  | — |  |  | 15,512 |
Extensions and Discoveries (e) |  | 979,801 |  |  | 18,459 |  |  | 1,314 |  |  | 1,098,436 |
Production |  | (216,260 | ) |  | (2,578 | ) |  | (664 | ) |  | (235,714 | )
Balance December 31, 2014 (c) |  | 6,317,600 |  |  | 77,791 |  |  | 7,213 |  |  | 6,827,616 |
Proved developed reserves: |  |  |  |  |  |  |  |
December 31, 2012 |  | 2,149,912 |  |  | 1,717 |  |  | 878 |  |  | 2,165,483 |
December 31, 2013 |  | 2,470,412 |  |  | 5,939 |  |  | 1,375 |  |  | 2,514,294 |
December 31, 2014 |  | 2,979,906 |  |  | 32,406 |  |  | 4,062 |  |  | 3,198,706 |
Proved undeveloped reserves: |  |  |  |  |  |  |  |
December 31, 2012 |  | 1,755,525 |  |  | 12,075 |  |  | — |  |  | 1,827,975 |
December 31, 2013 |  | 3,114,695 |  |  | 15,607 |  |  | 1,431 |  |  | 3,216,920 |
December 31, 2014 |  | 3,337,694 |  |  | 45,385 |  |  | 3,151 |  |  | 3,628,910 |
__________
(a) | Revisions are primarily due to corporate planning changes that affect the number of wells (5-Years) forecasted to be drilled in our various areas and reservoirs. These changes along with upward revisions attributable to efficiencies in operations and well performance had the total affect of the positive revisions for 2013 and 2012.
(b) | Extensions and Discoveries in 2013 and 2012 are primarily due to the addition of wells on our Marcellus Shale acreage more than one offset location away with reliable technology.
(c) | Proved developed and proved undeveloped gas reserves are defined by SEC Rule 4.10(a) of Regulation S-X. Generally, these reserves would be commercially recovered under current economic conditions, operating methods and government regulations. CONSOL Energy cautions that there are many inherent uncertainties in estimating proved reserve quantities, projecting future production rates and timing of development expenditures. Proved oil and gas reserves are estimated quantities of natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and government regulations. Proved developed reserves are those reserves expected to be recovered through existing wells, with existing equipment and operating methods.
(d) | Revisions for 2014 are primarily due to efficiencies in operations and well optimization and had the total effect of positive revisions. Additionally, the 2014 revisions include a reclassification of ethane volumes from natural gas to NGLs.
(e) | Extensions and Discoveries in 2014 are primarily due to the addition of wells on our Marcellus and Utica Shale acreage. We also included Marcellus Shale wells which are more than one offset location away due to continued use of reliable technology.
|  | For the Year
|  | Ended
|  | December 31,
|  | 2014
Proved Undeveloped Reserves (MMcfe) |  |
Beginning proved undeveloped reserves |  | 3,216,920 |
Undeveloped reserves transferred to developed(a) |  | (526,839 | )
Price Changes |  | (1,293 | )
Plan and other revisions (b) |  | (9,034 | )
Extension and discoveries |  | 949,156 |
Ending proved undeveloped reserves(c)(d) |  | 3,628,910 |
_________
(a) | During 2014, various exploration and development drilling and evaluations were completed. Approximately, $389,838 of capital was spent in the year ended December 31, 2014 related to undeveloped reserves that were transferred to developed.
(b) Plan and other revisions are due to corporate planning changes that affect the number of wells forecasted to be drilled in our various areas and reservoirs. These changes along with upward revisions attributable to efficiencies in operations and well performance had the total affect of a positive revision.
(c) | Included in proved undeveloped reserves at December 31, 2014 are approximately 212,161 MMcfe of reserves that have been reported for more than five years. These reserves specifically relate to CONSOL Energy's Buchanan Mine, more specifically, to GOB (a rubble zone formed in the cavity created by the extraction of coal) production due to a complex fracture being generated in the overburden strata above the mined seam. Mining operations take a significant amount of time and our GOB forecasts are consistent with the future plans of the Buchanan Mine. Evidence also exists that supports the continual operation of the mine beyond the current plan, unless there was an extreme circumstance which resulted from an external factor. These reasons constitute that specific circumstances exist to continue recognizing these reserves for CONSOL Energy.
(d) | Included in proved undeveloped reserves at December 31, 2014 are 229 gross proved undeveloped locations that generate positive future net revenue but have negative present worth discounted at 10 percent as of December 31, 2014, representing 12.1% of our total proved undeveloped reserves. Additionally, the 438.8 Bcfe of natural gas and equivalents attributable to these locations represent approximately 6.4% of our total proved reserves. The Company includes these well sites in its current drilling plans and currently intends to drill these sites as our economic modeling of these well locations generate positive future cash flows.
The following table represents the capitalized exploratory well cost activity as indicated:
|  | December 31,
|  | 2014
Costs pending the determination of proved reserves at December 31, 2014 |  |
For a period one year or less |  | $ | 22,851 |
For a period greater than one year but less than five years |  | — |
For a period greater than five years |  | — |
Total |  | $ | 22,851 |
|  | December 31,
|  | 2014 |  | 2013 |  | 2012
Costs reclassified to wells, equipment and facilities based on the determination of proved reserves |  | $ | 27,453 |  |  | $ | 12,140 |  |  | $ | 14,447 |
Costs expensed due to determination of dry hole or abandonment of project |  | $ | 2,041 |  |  | $ | 8,596 |  |  | $ | 3,320 |
CONSOL Energy's proved gas reserves are located in the United States.

X
- Details
Name: | cnx_SupplementalGasDataAbstract
Namespace Prefix: | cnx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for oil and gas producing industries. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -URI http://asc.fasb.org/section&trid=2145543 + Details
Name: | us-gaap_OilAndGasExplorationAndProductionIndustriesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration