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Derivative Instruments
 3 Months Ended
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments:
DERIVATIVE INSTRUMENTS:

CONSOL Energy enters into financial derivative instruments to manage its exposure to commodity price volatility. These natural gas and NGL commodity hedges are accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings.

CONSOL Energy is exposed to credit risk in the event of non-performance by counterparties. The creditworthiness of counterparties is subject to continuing review. The Company has not experienced any issues of non-performance by derivative counterparties.

None of the Company's counterparty master agreements currently require CONSOL Energy to post collateral for any of its positions. However, as stated in the counterparty master agreements, if CONSOL Energy's obligations with one of its counterparties cease to be secured on the same basis as similar obligations with the other lenders under the credit facility, CONSOL Energy would have to post collateral for instruments in a liability position in excess of defined thresholds. All of the Company's derivative instruments are subject to master netting arrangements with our counterparties. CONSOL Energy recognizes all financial derivative instruments as either assets or liabilities at fair value on the Consolidated Balance Sheets on a gross basis.
 
Each of CONSOL Energy's counterparty master agreements allows, in the event of default, the ability to elect early termination of outstanding contracts. If early termination is elected, CONSOL Energy and the applicable counterparty would net settle all open hedge positions.

The total notional amounts of production of CONSOL Energy's derivative instruments at March 31, 2017 and December 31, 2016 were as follows:
 
March 31,
 
December 31,
 
Forecasted to
 
2017
 
2016
 
Settle Through
Natural Gas Commodity Swaps (Bcf)
819.1
 
744.7

 
2021
Natural Gas Basis Swaps (Bcf)
476.8
 
482.0

 
2021
Propane Commodity Swaps (Mbbls)
—

 
126.0

 
—

The gross fair value of CONSOL Energy's derivative instruments at March 31, 2017 and December 31, 2016 was as follows:
Asset Derivative Instruments
 
Liability Derivative Instruments
 
March 31,
 
December 31,
 
 
March 31,
 
December 31,
 
2017
 
2016
 
 
2017
 
2016
Commodity Swaps:
 
 
 
 
 
 
 
 
Prepaid Expense
$
6,408

 
$
16

 
Other Accrued Liabilities
$
122,747

 
$
209,980

Other Assets
58,422

 
29,596

 
Other Liabilities
25,838

 
67,139

Total Asset
$
64,830

 
$
29,612

 
Total Liability
$
148,585

 
$
277,119

 
 
 
 
 
 
 
 
 
Basis Only Swaps:
 
 
 
 
 
 
 
 
Prepaid Expense
$
2,745

 
$
56,916

 
Other Accrued Liabilities
$
70,281

 
$
21,593

Other Assets
12,722

 
35,603

 
Other Liabilities
24,946

 
11,575

Total Asset
$
15,467

 
$
92,519

 
Total Liability
$
95,227

 
$
33,168













The effect of derivative instruments on CONSOL Energy's Consolidated Statements of Income was as follows:
 
For the Three Months Ended
 
March 31,
 
2017
 
2016
Cash (Paid) Received in Settlement of Commodity Derivative Instruments:
 
 
 
  Commodity Swaps:
 
 
 
    Natural Gas
$
(24,607
)
 
$
82,146

    Propane
(1,216
)
 
—

  Natural Gas Basis Swaps
(21,280
)
 
2,185

Total Cash (Paid) Received in Settlement of Commodity Derivative Instruments
(47,103
)
 
84,331

 
 
 
 
Unrealized Gain (Loss) on Commodity Derivative Instruments:
 
 
 
  Commodity Swaps:
 
 
 
    Natural Gas
162,604

 
(38,023
)
    Propane
1,147

 
(265
)
  Natural Gas Basis Swaps
(139,111
)
 
(6,421
)
  Reclassified from Accumulated OCI
—

 
15,438

Total Unrealized Gain (Loss) on Commodity Derivative Instruments
24,640

 
(29,271
)
 
 
 
 
(Loss) Gain on Commodity Derivative Instruments:
 
 
 
  Commodity Swaps:
 
 
 
    Natural Gas
137,997

 
44,123

    Propane
(69
)
 
(265
)
  Natural Gas Basis Swaps
(160,391
)
 
(4,236
)
  Reclassified from Accumulated OCI
—

 
15,438

Total (Loss) Gain on Commodity Derivative Instruments
$
(22,463
)
 
$
55,060


Changes in Accumulated OCI, net of tax, attributable to cash flow hedges that were de-designated at December 31, 2014 were as follows:
 
For the Three Months Ended
 
March 31,
 
2017
 
2016
Beginning Balance – Accumulated OCI
$
—

 
$
43,470

Less: Gain Reclassified from Accumulated OCI (Net of tax: $5,624)
—

 
(9,814
)
Ending Balance – Accumulated OCI
$
—

 
$
33,656



The Company also enters into fixed price natural gas sales agreements that are satisfied by physical delivery. These physical commodity contracts qualify for the normal purchases and sales exception and are not subject to derivative instrument accounting.