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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K

 

 

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2014;

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number: 001-14901

 

 

A.  Full title of the plan and the address of the plan, if different from that of issuer named below:

CONSOL Energy Inc. Investment Plan for Salaried Employees

 

 

B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

CONSOL Energy Inc.

CNX Center

1000 CONSOL Energy Drive

Canonsburg, PA 15317

Registrant’s telephone number including area code: 724-485-4000

 

 

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CONSOL Energy Inc.

Investment Plan for

Salaried Employees

Index

December 31, 2014 and 2013

 

		Page(s)
Report of Independent Registered Public Accounting Firm			1
Financial Statements
Statements of Net Assets Available for Benefits			2
Statement of Changes in Net Assets Available For Benefits			3
Notes to Financial Statements			4-25
Supplemental Schedule
Schedule H, Part IV, Line 4(i) Schedule of Assets (Held at End of Year)			27-40

 

Note:

Other Schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act (“ERISA”) of 1974 have been omitted because they are not applicable.

 

Signatures			41
Index to Exhibit			42

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Trustees, Investment Plan Committee, Audit Committee, and Participants

CONSOL Energy Inc. Investment Plan for Salaried Employees

We have audited the accompanying statements of net assets available for benefits of the CONSOL Energy Inc. Investment Plan for Salaried Employees (the “Plan”) as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the year ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

The supplemental information in the accompanying Schedule H, Part IV, Line 4(i) - Schedule of Assets (Held at End of Year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of the CONSOL Energy Inc. Investment Plan for Salaried Employees’ financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but include supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedule is fairly stated in all material respects in relation to the financial statements as a whole.

/s/ Baker Tilly Virchow Krause, LLP

Pittsburgh, Pennsylvania

June 18, 2015

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Statements of Net Assets Available for Benefits

 

 

		December 31
		2014				2013
ASSETS
Investments at Fair Value
Stable Value Fund		$	538,681,453			$	592,939,185
Interests in Registered Investment Companies			413,527,662				425,458,846
E.I. DuPont de Nemours & Company Common Stock			32,921,338				35,885,953
CONSOL Stock Fund			97,452,955				128,294,536
			1,082,583,408				1,182,578,520
Receivables
Due from Broker for Securities Sold			76,390				70,216
Accrued Interest and Dividends			154				57
Notes Receivable from Participants			22,606,514				24,231,704
			22,683,058				24,301,977
Cash			1,465,230				1,678,659
Net Assets Reflecting All Investments at Fair Value			1,106,731,696				1,208,559,156
Adjustment from Fair Value to Contract Value for Fully Benefit-Responsive Investment Contracts Held in Stable Value Fund			(15,080,212	)			(12,379,061	)
NET ASSETS AVAILABLE FOR BENEFITS		$	1,091,651,484			$	1,196,180,095

 

 

 

 

The accompanying notes are an integral part of these financial statements		2

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Statement of Changes in Net Assets Available for Benefits

 

 

		For the Year Ended December 31, 2014
Additions to Net Assets Attributable to:
Contributions:
Participants – Contributions		$	33,920,524
Participants – Rollovers			30,233,916
Employer			22,482,675
			86,637,115
Interest Income from Participants’ Notes Receivable			939,244
Investment Income:
Interest and Dividends			27,604,033
Net Appreciation in Fair Value of Investments			711,466
			28,315,499
Total Additions			115,891,858
Deductions from Net Assets Attributed to:
Benefits Paid to Participants			220,270,789
Administrative Expense			149,680
Total Deductions			220,420,469
Net Decrease			(104,528,611	)
Net Assets Available for Benefits
Beginning of Year			1,196,180,095
END OF YEAR		$	1,091,651,484

 

 

 

 

The accompanying notes are an integral part of these financial statements		3

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

1.	DESCRIPTION OF PLAN

The following description of the CONSOL Energy Inc. Investment Plan for Salaried Employees (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General – The Plan is a tax-qualified, defined-contribution plan covering full-time salaried, operations and maintenance, production and maintenance, warehouse and maintenance, and certain part-time casual employees of CONSOL Energy Inc. and other participating employers (“CONSOL Energy” or the “Company”). Employees can participate in the Plan on the first day of the first full pay period following the date they first become eligible. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, and the Internal Revenue Code (“Code”).

The Plan Administrator is the Investment Plan Committee of CONSOL Energy, whose members are appointed by the Board of Directors (the “Board”) of the Company. The Investment Plan Committee also has responsibility for selecting and overseeing the Plan’s investments. The Board has the authority to appoint trustees and has designated Bank of America, N.A. (“Bank of America”) as trustee for the Plan.

On December 12, 2014, the Company sold its Fairmont Supply Company (“Fairmont Supply”) subsidiary to an unrelated third party employer. As a result, employees of Fairmont Supply are considered to have terminated employment under the CONSOL Energy control group and are no longer eligible to participate in the Plan after December 12, 2014.

During 2014 and 2013, the Plan offered CONSOL Energy common stock (“CONSOL Stock Fund”) as an investment option to Plan participants. The CONSOL Stock Fund is an Employee Stock Ownership Plan (“ESOP”) where participants can elect to have dividends paid to them in cash instead of being reinvested in the CONSOL Stock Fund in their Plan account. For the years ended December 31, 2014 and 2013, dividends from the CONSOL Stock Fund paid to participants in cash were not significant.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

1.	DESCRIPTION OF PLAN (Continued)

 

Contributions – Participants may make before-tax or after-tax contributions of 1% to 75% of eligible compensation to the Plan via payroll deductions. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants are automatically enrolled in the Plan at a 6% before-tax savings rate (4% for employees of Fairmont Supply prior to December 12, 2014) if no action is taken by the employee within forty-five days from the date they first become eligible. Under the automatic enrollment provision, participant assets are invested in accordance with a managed account feature offered by Bank of America based on certain demographic characteristics of the participant. A participant may elect not to participate in the Plan at any time.

A participant may also separately designate from 1% to 75% (not to exceed $10,000) of any incentive compensation payment as a supplemental before-tax or after-tax contribution. Participants may also contribute amounts representing distributions from other qualified defined-benefit or defined-contribution plans.

CONSOL Energy matches these contributions (excluding deferrals of incentive compensation payments), dollar for dollar, up to 6% of eligible compensation (fifty cents on every dollar up to 12% of eligible compensation for employees of Fairmont Supply prior to December 12, 2014).

Prior to December 12, 2014, certain eligible employees of Fairmont Supply received qualified non-elective (“QNEC”) contributions equal to $1,500 per year, regardless of the employee’s contribution election. The Company may also make discretionary contributions to the Plan ranging from 1% to 4% of eligible compensation for eligible employees (as defined by the Plan). There were no such discretionary contributions made by the Company for the years ended December 31, 2014 and 2013. All participant and matching contributions are subject to regulatory and Plan limitations, and total contributions credited to a participant’s account are further subject to annual addition limitations under the Code.

Participant Accounts – Each participant’s account is (i) credited with the participant’s contributions and allocations of the Company’s contributions and Plan investment earnings and (ii) charged with an allocation of administrative expenses and Plan investment losses. Allocations are based on participant earnings, account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

1.	DESCRIPTION OF PLAN (Continued)

 

Investment Options – Upon enrollment in the Plan, a participant may direct employee and Company contributions into any of the funds included in the supplemental schedule of assets (held at end of year), except for E.I. DuPont de Nemours & Company (“DuPont”) common stock. Participants may not invest additional contributions or request a fund transfer into this investment option. However, they may transfer out of this investment option at any time.

Vesting – Participants are immediately vested in their contributions and any matching contributions, QNEC contributions, or discretionary contributions made by the Company plus actual earnings (losses) thereon.

Notes Receivable from Participants – Participants may borrow the lesser of up to one-half of their account balances subject to a $1,000 minimum or required regulatory loan maximum limitations. Such loans are repayable over periods of 12 to 60 months (120 months maximum if for the purchase of a principal residence) and are secured by the balance in the participant’s account. The rate of interest on loans is commensurate with the average rate charged by selected major banks for secured personal loans and remains fixed for the life of the loan. Loans are repaid over the period in installments of principal and interest via payroll deductions or ACH account debit for participants that terminate employment subsequent to the loan’s execution. A participant also has the right to repay the loan in full, at any time, without penalty. At December 31, 2014, loan interest rates ranged from 4.25% to 9.25%.

Payment of Benefits – Participants who retire from active service may elect to defer withdrawals until April of the calendar year following the later of the year in which the participant attains age 70 ¹/₂ or terminates employment. They may also elect an option to have their account distributed over a period of not less than two years or more than a period which would pay the account balance during the participant’s actuarial life in either a fixed or variable amount. Before-tax deposits may be withdrawn only in the event of a participant’s retirement, death, termination, attainment of age 59 ¹/₂ or defined hardship.

Plan Termination – Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting – The accompanying financial statements of the Plan have been prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Fully Benefit-Responsive Investment Contracts – Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The statements of net assets available for benefits presents the fair value of the fully benefit-responsive investment contracts held in the CONSOL Energy Inc. Stable Value Fund (“Stable Value Fund” or “SVF”) as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is prepared on a contract value basis for the fully benefit-responsive investment contracts in the SVF.

Investment Valuation and Income Recognition – The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 4 for a discussion of fair value measurements.

Purchases and sales of investments are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Realized gains and losses on the sale of common stocks are based on the average cost of the securities sold. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Notes Receivable from Participants – Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest on notes receivable from participants is recognized over the term of the notes and calculated using a simple-interest method on principal amounts. The Plan administrator considers delinquent loans to be defaulted on the last day of the calendar quarter following the quarter in which the last payment was made and reclassified as a distribution based on the terms of the Plan document.

Payment of Benefits – Benefits are recorded when paid.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Administrative Expenses – Expenses incurred in connection with the operation of the Plan with regard to the purchase and sale of investments and certain trustee and professional fees are paid by the Plan. Fees related to specific participant transactions are charged directly to the participant’s account and are included in administrative expenses. Asset-based fees are deducted prior to allocation of the Plan’s investment earnings activity and thus are not separately identifiable as an expense. Other administrative expenses are paid by CONSOL Energy at no cost to the Plan.

Use of Estimates – The preparation of financial statements in conformity with US GAAP requires Plan management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

ESOP – The Plan’s ESOP provision provides that participants may invest a portion or all of their account in Company stock. The ESOP provision also contains a put option in accordance with the requirements of the Code, which is a right for any participant who is otherwise entitled to a distribution from the Plan to require the Company stock in their ESOP account be repurchased by the Company if it is not readily tradable on an established market. Participants who elect to invest their account balance in Company stock have voting rights commensurate with their shares and participants are fully vested at all times in dividends paid on the acquired Company stock. A participant also has the right to diversify stock in their accounts pursuant to the provisions of the Plan document. At December 31, 2014 and 2013, and from the period since inception of the ESOP, there were no Company contributions in the form of stock.

Recent Accounting Pronouncement – In May 2015, The Financial Accounting Standards Board issued Accounting Standards Update No. 2015-7, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculated Net Asset Value per Share (or its Equivalent) (“ASU 2015-07”). ASU 2015-07 removes the requirement to include investments in the fair value hierarchy for which fair value is measured using the net asset value per share practical expedient under ASC 820. ASU 2015-07 is effective for the Plan retrospectively for the year ending December 31, 2016 with early adoption permitted. The Plan’s management is currently evaluating the impact of the pending adoption of ASU 2015-07 on the Plan’s financial statements.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

3.	CONTRACTS WITH INSURANCE COMPANIES

The Plan has direct holdings of fully benefit-responsive investment contracts in its SVF. The SVF is comprised of guaranteed investment contracts (“GIC”) (held by the Plan at December 31, 2013 and matured in 2014), separate account portfolios (“SAP”), and synthetic GICs (“SYN”), all of which are held with multiple insurance companies and banks. GICs were comprised of assets held in the issuing company’s general account and backed by the full faith and credit of the issuer. SAPs and SYNs are backed by underlying fixed income assets.

The aggregate crediting rates for all contracts as of December 31, 2014 and 2013 were 2.00% and 2.05%, respectively. Contract or crediting rates for GICs were negotiated with the issuer and were effective for the life of the contract. The contract or crediting rates for SAPs and SYNs are reset periodically throughout the year and are based on the performance of the portfolio of assets underlying these contracts. Inputs used to determine the crediting rate include each contract’s portfolio market value of fixed income assets, current yield-to-maturity, duration, and market value relative to contract value. All contracts have a guaranteed rate of at least 0% or higher with respect to determining interest rate resets. If future crediting rates increase or decrease, the adjustment from fair value to contract value would change in the same direction. The average market value yield of the SVF based on the actual earnings of the underlying assets was approximately 2.47% and -0.93% in 2014 and 2013, respectively. The average yield of the SVF based on the actual interest rate credited to participants’ accounts in 2014 and 2013 was approximately 1.87% and 2.37%, respectively.

Traditional GICs exposed the Plan through the SVF to direct credit risk associated with each contract issuer. To mitigate this risk, investment guidelines prohibited the Plan from purchasing contracts from issuers with a credit rating lower than Aa3/AA. In addition, the weighted average credit rating of all GIC contracts was A3/A- or higher at all times and no single GIC issuer represented more than 5% of the total SVF. Additionally, the Plan administrator and the Plan’s third party investment advisors continually monitored the issuers of these investments through external credit rating agencies and monitored credit rating history, downgrade/upgrade notifications, and analyst reports for all issuers. At December 31, 2013, there were no reserves against contract value for credit risk of the contract issuers or otherwise.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

3.	CONTRACTS WITH INSURANCE COMPANIES (Continued)

 

Participants may ordinarily direct the withdrawal or transfer of all or a portion of their SVF investment at contract value for Plan permitted benefit payments. Certain events may limit the ability of the Plan to transact at contract value with the issuer. Such events include amendments to Plan documents (including complete or partial Plan termination or merger with another plan or distribution of any participant communication designed to induce participants to withdraw or otherwise transfer amounts from the SVF), changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions, bankruptcy of the Company or other Plan sponsor events (i.e. divestitures or spin-offs of a subsidiary) which cause a significant withdrawal from the Plan, or failure of the Plan to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan administrator does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable of occurring.

Based on certain events specified in the fully benefit-responsive investment contracts (i.e. SAPs and SYNs), both the Plan and issuers of such investment contracts are permitted to terminate the investment contracts. If applicable, such terminations can occur prior to the scheduled maturity date.

Examples of termination events that permit issuers to terminate investment contracts include the following:

 

•

The Plan sponsor’s receipt of a final determination notice from the Internal Revenue Service (“IRS”) that the Plan does not qualify under Section 401(a) of the Code.

•

The Plan ceases to be exempt from federal income taxation under section 501(a) of the Code.

•

The Plan or its representative breaches material obligations under the investment contract such as failure to satisfy its fee payment obligations or failure to follow the contract’s equity wash provisions.

•

The Plan or its representatives makes a material misrepresentation, including acts of fraud or deceit, which affects the intent, structure, or risk profile of the contract.

•

The Plan makes a material amendment to the Plan (including complete or partial termination or merger with another plan) and/or the amendment adversely impacts the issuer.

•

The Plan, without the issuer’s consent, attempts to assign its interest in the investment contract.

•

The balance of the contract value is zero or immaterial.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

3.	CONTRACTS WITH INSURANCE COMPANIES (Continued)

 

•

Mutual consent.

•

The termination event is not cured within a reasonable time period, i.e., 30 days.

•

The investment manager of the underlying securities is replaced without prior written consent of the issuer.

•

The underlying securities are managed in a way that does not comply with the investment guidelines.

For SAPs and SYNs, termination is at market value of the underlying securities, less unpaid issuer fees or charges. If the termination event is not material based on industry standards, it may be possible for the Plan to exercise its right to require the issuer that initiated the termination to extend the investment contract for a period no greater than what it takes to immunize the underlying securities and/or replace the issuer. Both options help maintain stable contract value.

Participants investing in the SVF are assigned units at the time of investment based on the net asset value per unit.

 

4.	FAIR VALUE MEASUREMENTS

US GAAP for fair value measurements provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

The three levels of the fair value hierarchy are described as follows:

 

•

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. An active market for the asset or liability is a market in which the transaction for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

•

Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, or other inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

 

•

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at December 31, 2014 and 2013.

Stable Value Fund – The SVF is comprised of a short-term investment fund in addition to GICs (held by the Plan at December 31, 2013 and matured in 2014), SAPs and SYNs. These fully benefit-responsive contracts are valued at fair value on the statements of net assets available for benefits and are credited with actual earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The following disclosures provide information about the nature of the investments in the SVF and how fair value of these investments is measured.

 

•

U.S. Government Security Fund – This security is a short-term investment fund (i.e., money market fund) designed to provide daily liquidity to the SVF and is stated at cost plus accrued interest, which approximates fair value. The fund seeks to preserve a net asset value of $1 per share and can be validated with a sufficient level of market activity and, therefore, is classified within Level 1 of the fair value hierarchy.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

•

Guaranteed Investment Contracts – The insurer maintained the assets (underlying portfolio owned by insurer) of GICs held by the Plan at December 31, 2013 and that matured in 2014 in a general account, backed by the full faith and credit of the insurer. GICs provided a fixed rate of return as negotiated when the contract was purchased, regardless of the performance of the general account assets. GICs held by the Plan at December 31, 2013 were stated at cost plus accrued interest, which approximated fair value, and were classified within Level 2 of the fair value hierarchy.

 

•

Separate Account Portfolios – SAPs are investment contracts invested in insurance company separate accounts established for the sole benefit of SVF participants. SAPs are comprised of two components, an underlying pool of assets and a “wrap” contract. The insurer owns the individual underlying assets and the wrap contract (similar to a GIC); however, the assets in a SAP are maintained in a separate account, fully fenced-off from the general assets of the insurer. The Plan participates in the underlying experience of the SAP via future periodic rate resets. Fair value of SAPs is determined by the market values of the underlying securities and the value of the wrap using observable market data by the insurer as of the valuation date. SAPs held by the Plan provide for daily redemptions by the Plan at reported net asset value with no advance notice requirement. There are no unfunded commitments associated with SAPs as of December 31, 2014 or 2013. The Plan is permitted to redeem investment units at net asset value on the measurement date. SAPs are classified within Level 2 of the fair value hierarchy.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

•

Synthetic GICs – SYNs are comprised of an underlying pool of assets (owned by the Plan) and a “wrap” contract designed to provide principal protection and accrued interest over a specified period of time assuming that the underlying assets meet the requirements of a GIC. Short-term investment funds include cash and short-term securities that mature within three months or less at date of purchase and are valued at amortized cost, which approximates fair value (Level 1), and liquid government or corporate debt securities valued at net asset value or using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency traded in markets that are not considered active (Level 2). Short-term investment funds valued at net asset value provide for daily redemptions by the Plan with no advance notice requirement and have no unfunded commitments at December 31, 2014 or 2013. Fixed income collective trusts invest in high quality fixed income securities across the short, intermediate, and core sectors, and are valued at the net asset value per share on the valuation date (Level 2). These collective trusts provide for daily redemptions by the Plan with no advance notice requirement and have no unfunded commitments as of December 31, 2014 or 2013. Other fixed income funds include government debt securities and corporate bonds valued using the observable quoted price reported in markets that are not considered active or pricing services based on market transactions for comparable securities of issuers with similar credit ratings (Level 2). Options are traded in active markets on national or international securities exchanges and are valued at closing prices on the last business day of the respective Plan year (Level 1). Swap contracts are valued at fair value utilizing pricing models and taking into consideration exchange quotations on underlying instruments, dealer quotations and other information (Level 2). Any accrued interest on the underlying assets is also included as a component of the fair value of those assets. Fair value of the wrap contracts is determined by taking the difference between the actual wrap fee of the contract and the price at which the wrapper would issue an identical contract under current market conditions. That change in fees is then applied to the year-end book value of the contract to determine the wrap contract’s fair value. Wrap contracts generally change the investment characteristics of underlying securities (such as corporate debt or U.S. government securities) to those of GICs. The wrap contract provides that benefit-responsive transactions may be processed at contract or face value. Benefit-responsive distributions are generally defined as a withdrawal due to a participant’s retirement, termination, or death, or participant-directed transfers, in accordance with the terms of the Plan (see Note 3).

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

Interests in Registered Investment Companies – The shares of registered investment companies are public investment vehicles valued at quoted market prices, which represent the net asset values of the shares held in such funds. Each of these funds is considered an open ended interest in a registered investment company and valued using a market approach. Fair value is based on a daily net asset value that can be validated with a sufficient level of observable activity in an active market (i.e. purchases and sales at net asset value) and therefore these interests in registered investment companies have been classified within Level 1 of the fair value hierarchy.

Common Stock and Common Stock Fund – DuPont common stock and the CONSOL Stock Fund are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the respective Plan year. As a result, the fair value measurements of these investments have been classified within Level 1 of the fair value hierarchy.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets and liabilities at fair value as of December 31, 2014 and 2013:

 

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

4.	FAIR VALUE MEASUREMENTS (Continued)

 

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. For the year ended December 31, 2014, there were no such transfers in or out of Levels 1, 2 or 3.

 

5.	INVESTMENTS

The following presents individual investments that represent 5% or more of the Plan’s net assets available for benefits at December 31:

 

		2014				2013
CONSOL Stock Fund		$	97,452,955			$	128,294,536
Vanguard Institutional Index Fund			74,864,279				64,539,539
*Massachusetts Mutual Life Insurance Co. (SAP)			48,112,431	**			59,897,945
*Metropolitan Life Insurance Co. (SAP)			70,873,358				69,439,935
*Jennison Intermediate Core Bond Fund			71,349,827				67,766,148
*Prudential Core Cons. Inter. Bond Fund			69,091,633				66,447,340
*GEM Trust Opportunistic 3			67,115,777				50,090,436	**

 

*

These investments are included in the Stable Value Fund.

**

For comparative purposes only. Amount does not exceed 5% of net assets available for benefits.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

5.	INVESTMENTS (Continued)

 

During 2014, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $711,466, as follows:

 

		Net Appreciation (Depreciation) in Fair Value of Investments
Stable Value Fund		$	10,277,694
Registered Investment Companies			(904,957	)
Common Stock:
E.I. DuPont de Nemours & Company			3,424,661
CONSOL Stock Fund			(12,085,932	)
		$	711,466

The SVF is a separate account held by the Plan. The investment contracts are entered into based on an evaluation of the credit risk of the contract issuers and/or third party guarantors. Collateral is generally not provided. The SVF includes traditional GICs (matured in 2014) as well as SAPs and SYNs.

The following reflects the adjustment between the underlying securities and the insurance contract values in the SVF:

 

		December 31
		2014				2013
Investments at Fair Value		$	538,633,657			$	592,889,056
Wrap Contracts (at Fair Value)			47,796				50,129
			538,681,453				592,939,185
Adjustment from Fair Value to Contract Value			(15,080,212	)			(12,379,061	)
Investments at Contract Value		$	523,601,241			$	580,560,124

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

5.	INVESTMENTS (Continued)

 

The composition of assets of the SVF at contract value as of December 31, 2014 and 2013 are as follows:

 

		2014				2013
Synthetic Guaranteed Investment Contracts		$	329,705,987			$	336,004,147
Separate Account Portfolios			188,566,436				210,111,109
Guaranteed Investment Contracts			0				3,822,920
Short-term Investment Fund			5,328,818				30,621,948
		$	523,601,241			$	580,560,124

SYNs within the SVF are comprised of the following:

 

				December 31
		Credit     Rating		2014				2013
SYNs (at Contract Value):
Prudential Retirement Ins. & Annuity Co.		AAA		$	138,521,749			$	135,487,569
Voya Retirement Ins. & Annuity Co.		AA			38,434,865				44,733,155
Transamerica Premier Life Insurance Co.		AA			38,434,865				44,733,155
Voya Retirement Ins. & Annuity Co.		AA			57,157,254				55,525,134
Transamerica Premier Life Insurance Co.		AA			57,157,254				55,525,134
Total SYNs (at Contract Value)				$	329,705,987			$	336,004,147

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

5.	INVESTMENTS (Continued)

 

The composition of changes in net assets of the SVF at contract value for the year ended December 31, 2014 is as follows:

 

Employer Contributions		$	4,824,993
Participant Contributions and Rollovers			35,510,918
Total Contributions			40,335,911
Interest and Dividend Income			244,437
Net Realized/Unrealized Appreciation in Investment Value			10,277,694
Benefits Paid to Participants			(116,126,206	)
Administrative Expense			(48,109	)
Net Loan Activity			(123,680	)
Net Interfund Transfers			8,481,070
Decrease in Net Assets Available for Benefits			(56,958,883	)
Net Assets Available for Benefits
Beginning of Year			580,560,124
End of Year		$	523,601,241

 

6.	TAX STATUS

The Plan obtained its latest determination letter from the IRS dated September 25, 2014, stating that the Plan was qualified under the Code and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. Although the Plan has been amended since receiving the determination letter, the Plan administrator believes that the Plan is designed, and is currently being operated, in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

6.	TAX STATUS (Continued)

 

US GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2014 and 2013, there are no uncertain positions taken, or expected to be taken, that would require recognition of a tax liability and related interest and penalties or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2011.

 

7.	RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2014 and 2013 to Form 5500:

 

		2014				2013
Net Assets Available for Benefits per the Financial Statements		$	1,091,651,484			$	1,196,180,095
Amounts Allocated to Withdrawing Participants			(1,658,629	)			(1,937,493	)
Net Assets Available for Benefits per the Form 5500		$	1,089,992,855			$	1,194,242,602

The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 2014 to Form 5500:

 

Benefits Paid to Participants per the Financial Statements		$	220,270,789
Amounts Allocated to Withdrawing Participants at December 31, 2014			1,658,629
Less: Amounts Allocated to Withdrawing Participants at December 31, 2013			(1,937,493	)
Benefits Paid to Participants per Form 5500		$	219,991,925

Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 2014, but not yet paid as of that date.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

8.	TRANSACTIONS WITH PARTIES-IN-INTEREST

Certain Plan investments, including several underlying SYN assets within the SVF, are managed by Bank of America. Bank of America is the trustee as defined by the Plan and, therefore, these transactions qualify as those conducted with a party-in-interest to the Plan. In addition, other underlying SYN assets include funds managed by State Street Bank & Trust, one of the custodians of the Plan. The Plan also issues loans to participants, which are secured by the participants’ account balances. Therefore, these transactions qualify as those conducted with a party-in-interest to the Plan.

Merrill Lynch, Pierce, Fenner, and Smith (“MLPF&S”), a subsidiary of Bank of America, provides certain administrative services to the Plan pursuant to a service agreement between the Company and MLPF&S. MLPF&S receives revenue from mutual fund and SVF service providers for services MLPF&S provides to the funds. This revenue is used to offset certain amounts owed to MLPF&S for its administrative services to the Plan. If the revenue received by MLPF&S from such fund service providers exceeds the amount owed under the service agreement, MLPF&S remits the excess to the Plan’s trust on a quarterly basis. Such amounts may be applied to pay Plan administrative expenses or allocated to the accounts of Plan participants. Alternatively, the Plan or Company may make a payment to MLPF&S for administrative expenses not covered by revenue sharing. During 2014, $45,100 of excess revenue was returned to the Plan’s trust. These fees qualify as party-in-interest transactions, which are exempt from the prohibited transaction rules of ERISA.

One of the investment vehicles available to participants, the CONSOL Stock Fund, contains stock of CONSOL Energy. The Plan held 2,882,371 shares and 3,372,622 shares of CONSOL Energy common stock at December 31, 2014 and 2013, respectively. In addition, during 2014, the Plan purchased 686,922 shares of CONSOL Energy stock at an aggregate cost of $27,148,845 and sold 929,009 shares of CONSOL Energy stock for total proceeds of $36,919,998. The Plan received $761,195 in dividends on Company stock during 2014. Transactions in this investment qualify as party-in-interest transactions which are exempt from the prohibited transaction rules of ERISA.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

9.	RISKS AND UNCERTAINTIES

The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.

In accordance with the investment strategy of the Plan’s investment contracts, the Plan’s investment manager may execute transactions in various financial instruments, including futures, interest rate swap contracts, and option contracts, that may give rise to varying degrees of off-balance-sheet market and credit risk. These instruments can be executed on an exchange or negotiated in the over-the-counter market. Interest rate swap contracts involve an agreement to exchange periodic interest payment streams (fixed vs. variable) calculated on an agreed upon periodic interest rate multiplied by a predetermined notional principal amount. Investments in financial futures contracts are solely for the purpose of hedging the Plan’s existing portfolios securities, or securities that the Plan intends to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, the Plan is required to pledge to the broker an amount of cash, U.S. government securities, or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as margin variation, are made or received by the Plan each day, depending on the daily fluctuations in the fair value of the underlying security. The Plan recognizes a gain or loss equal to the daily variation margin. If market conditions move unexpectedly, the Plan may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of future transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets. As a writer of option contracts, the Plan receives a premium to become obligated to buy or sell financial instruments for a period of time at the holder’s option. During this period, the Plan bears the risk of an unfavorable change in the market value underlying the option, but has no credit risk, as the counterparty has no performance obligation to the Plan once it has paid its cash premium. The Plan’s investments in futures, interest rate swap contracts, and option contracts are insignificant to the financial statements for the years ended December 31, 2014 and 2013, respectively.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2014 and 2013

 

 

9.	RISKS AND UNCERTAINTIES (Continued)

 

Market risk arises from the potential for changes in value of financial instruments resulting from fluctuations in interest rates and in prices of debt and equity securities. The gross notional (or contractual) amounts used to express the volume of these transactions do not necessarily represent the amounts potentially subject to market risk. In many cases, these financial instruments serve to reduce, rather than increase, the Plan’s exposure to losses from market and other risks. In addition, the measurement of market risk is meaningful only when all related and offsetting transactions are identified. The Plan’s investment managers generally limit the Plan’s market risk by holding or purchasing offsetting positions.

 

10.	SUBSEQUENT EVENT

The Plan was amended effective January 1, 2015 to provide for a QNEC contribution equal to 3% of eligible compensation for each payroll period for eligible participants, who are defined as active participants who are not classified as casual employees and (1) are hired or rehired on or after October 1, 2014; or (2) did not become participants in the CONSOL Energy Inc. Employee Retirement Plan (“Retirement Plan”) (a Company sponsored defined-benefit plan) on October 1, 2014 as the result of a participation freeze of the Retirement Plan as of September 30, 2014; or (3) whose accrued benefit under the Retirement Plan was frozen as of December 31, 2014. Beginning in January 2015, this new QNEC contribution is made to the accounts of the aforementioned participants regardless of the participant’s contribution election.

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

 

 

 

SUPPLEMENTAL SCHEDULE

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Table of Contents

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Common Stock
*		CONSOL Stock Fund					2,882,371			$	97,452,955
		E.I. DuPont de Nemours & Company					445,244				32,921,338
		Total Common Stock									130,374,293
		Interests in Registered Investment Companies
		American Funds		Europacific Growth Fund			1,033,928				48,687,666
		BlackRock		Basic Value Fund			1,448,314				39,162,397
		BlackRock		Inflation Protected Bond Fund			548,216				5,898,809
		ClearBridge		Large Cap Growth Fund			815,622				27,339,656
		Columbia		Acorn Fund			1,093,883				34,949,570
		Davis New York		Venture Fund			795,405				29,724,277
		DFA		Emerging Markets Core Equity Portfolio Fund			286,496				5,420,505
		Dodge & Cox		Income Fund			1,610,924				22,198,538
		Vanguard		Institutional Index Fund			396,800				74,864,279
		Vanguard		Mid Cap Index Fund			887,516				29,989,175
		Vanguard		Small Cap Index Fund			644,102				35,985,975
		Vanguard		Total Bond Market Index Fund			3,136,809				34,097,118
		Vanguard		Total International Stock Index Fund			242,448				25,209,697
		Total Interests in Registered Investment Companies									413,527,662
		Stable Value Fund
		Massachusetts Mutual Life Ins. Co.		Separate Account Portfolio, 3.36%, opened			41,896,139				41,896,139
		Massachusetts Mutual Life Ins. Co.		Separate Account Portfolio, 2.29%, opened			48,112,431				48,112,431
		Metropolitan Life Insurance Co.		Separate Account Portfolio, 1.98%, opened			70,873,359				70,873,358
		Metropolitan Life Insurance Co.		Separate Account Portfolio, 0.69%, opened			27,684,508				27,684,508
		FFI Government Fund		Money Market Fund, 0.01%			5,328,818				5,328,818
		Prudential Separate Account Wrap:
		Prudential Retirement Ins. & Annuity Co.		Synthetic GIC, 2.14%, opened			138,521,750
		Underlying Security Description:
		Jennison Intermediate Core Bond Fund		Collective Trust			6,156,869				71,349,827
		Prudential Core Cons. Inter. Bond Fund		Collective Trust			6,089,665				69,091,633
		Prudential Retirement Ins. & Annuity Co.		Synthetic Wrap Agreement***							(1,919,711)

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Perpetual Window Global Wrap:
		Voya Retirement Ins. & Annuity Co.		Synthetic GIC, 0.38%, opened			38,434,865
		Transamerica Premier Life Insurance Co.		Synthetic GIC, 0.38%, opened			38,434,865
		Underlying Security Description:
		GEM Trust Short Duration		3,547,808.3862 units of participation							43,868,668
		US Dollar		CASH			24,052				24,052
		Credit Suisse First Boston		Cash as Collateral for Futures			21,000				21,000
		WI Treasury Sec.		0.01% 23 Apr 2015			100,000				99,987
		WI Treasury Inc		0.01% 14 May 2015			100,000				99,987
		Treasury Bill		0.01% 05 Mar 2015			100,000				99,997
		Treasury Bill		0.01% 12 Mar 2015			100,000				99,998
		Wells Fargo Bank NA		1% 20 Jul 2015			100,000				100,107
*		State Street SSgA		0.007% 31 Dec 2030 Gov. Short Term Invest. Fund			258,166				258,166
		Treasury Bill		0.01% 28 May 2015			400,000				399,895
		Treasury Bill		0.01% 21 May 2015			700,000				699,852
		BWU00A2C7 IRS USD PF 2.55000		2.55% 04 Sep 2024			(400,000)				(409,999)
		Fannie Mae		1% 25 Apr 2037			9,761				9,783
		Fannie Mae		1% 25 Jul 2037			22,674				22,812
		Wachovia Bank Commercial Mortgage		1% 15 Jun 2049			23,966				24,007
		Freddie Mac		1% 15 May 2037			24,604				24,668
		Fannie Mae		1% 25 Oct 2040			26,556				26,706
		Freddie Mac		1% 15 Jul 2037			39,178				39,622
		Fannie Mae		1% 25 Apr 2037			39,785				39,916
		Fannie Mae		1% 25 May 2037			41,556				41,855
		Fannie Mae		1% 25 Dec 2040			44,482				44,655
		SLM Student Loan Trust		1% 25 Oct 2022			52,408				52,382
		Fannie Mae		1% 25 Nov 2040			55,626				56,116
		Transocean Inc		6.5% 15 Nov 2020			60,000				56,578
		Fannie Mae		1% 25 Dec 2040			59,380				59,913
		Freddie Mac		1% 15 May 2037			63,701				64,012
		Freddie Mac		1% 15 Aug 2028			81,378				82,076
		Fannie Mae		1% 25 Jan 2040			84,030				85,346

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Altria Group Inc		9.25% 06 Aug 2019			67,000				86,111
		Government National Mortgage A		1% 20 Oct 2037			90,335				91,211
		Fannie Mae		1% 25 Sep 2041			93,837				94,440
		Fannie Mae		1% 25 Apr 2037			97,484				97,877
		Kinder Morgan Ener Part		2.65% 01 Feb 2019			100,000				98,531
		Chase Issuance Trust		1.38% 15 Nov 2019			100,000				99,603
		Laclede Group Inc		1% 15 Aug 2017			100,000				99,945
		Citibank Credit Card Issuance		1% 09 May 2018			100,000				100,000
		Boston Scientific Corp		2.65% 01 Oct 2018			100,000				100,118
		Abbvie Inc		1.75% 06 Nov 2017			100,000				100,217
		Abbvie Inc		1.2% 06 Nov 2015			100,000				100,294
		Fannie Mae		1.625% 27 Nov 2018			100,000				100,481
		Tyson Foods Inc		2.65% 15 Aug 2019			100,000				100,911
		Bear Stearns Commercial Mortgage		1% 11 Mar 2039			98,365				101,631
		Ensco PLC		3.25% 15 Mar 2016			100,000				101,829
		JPMorgan Chase & Co		3.45% 01 Mar 2016			100,000				102,640
		Kilroy Realty LP		5% 03 Nov 2015			100,000				103,079
		Intl Lease Finance Corp		6.75% 01 Sep 2016			100,000				106,500
		Fannie Mae		1% 25 Mar 2038			106,212				107,377
		Fannie Mae		1% 25 Apr 2037			107,069				107,593
		Ford Motor Credit Co LLC		6.625% 15 Aug 2017			100,000				111,476
		Navient Corp		8.45% 15 Jun 2018			100,000				111,500
		Healthcare Realty Trust		5.75% 15 Jan 2021			100,000				111,816
		Morgan Stanley		5.625% 23 Sep 2019			100,000				112,879
		HSBC Holdings PLC		5.1% 05 Apr 2021			100,000				113,040
		Freddie Mac		1% 15 Dec 2041			127,724				128,619
		Freddie Mac		1% 15 Sep 2037			136,976				139,237
		Freddie Mac		1% 15 Jun 2037			138,758				139,738
		Fannie Mae		1% 25 Mar 2035			139,300				140,796
		Credit Suisse Mortgage Trust		1% 15 Sep 2040			147,421				147,261
		Verizon Communications		3% 01 Nov 2021			150,000				147,935
		American Express Credit Account		1.49% 15 Apr 2020			150,000				150,136

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Fannie Mae		1% 25 Dec 2037			153,112				155,515
		Freddie Mac		1% 15 Oct 2040			170,997				172,654
		SLM Student Loan Trust		1% 27 Jan 2020			189,807				189,789
		Transocean Inc		6% 15 Mar 2018			200,000				192,372
		Ford Motor Credit Co LLC		1.684% 08 Sep 2017			200,000				198,408
		Chase Issuance Trust		1% 16 Dec 2019			200,000				199,656
		Fannie Mae		1% 25 Sep 2041			200,136				202,298
		DCP Midstream Operating		3.25% 01 Oct 2015			200,000				202,880
		Fannie Mae		1.875% 19 Feb 2019			200,000				203,034
		Citibank Credit Card Issuance		1% 23 Jan 2020			200,000				205,207
		Prologis LP		4% 15 Jan 2018			200,000				210,438
		FHLMC Multifamily Structured		3.389% 25 Mar 2024			200,000				211,224
		Verizon Communications		2.625% 21 Feb 2020			214,000				211,554
		Freddie Mac		1% 15 Oct 2040			210,735				211,976
		JP Morgan Chase Commercial Mortgage		5.439% 15 Jan 2049			204,291				218,349
		Tyco Electronics Group		4.875% 15 Jan 2021			200,000				219,442
		Freddie Mac		1% 15 Jan 2042			221,119				222,954
		HCP Inc		5.375% 01 Feb 2021			200,000				223,342
		American Intl Group		5.85% 16 Jan 2018			200,000				223,620
		Freddie Mac		1% 15 Oct 2040			224,211				225,991
		Ford Motor Credit Co LLC		5.875% 02 Aug 2021			200,000				231,558
		Amgen Inc		2.2% 22 May 2019			250,000				248,950
		Manuf & Traders Trust Co		2.25% 25 Jul 2019			250,000				249,395
		American Express Credit Account		1.26% 15 Jan 2020			250,000				249,401
		BPCE SA		1.625% 10 Feb 2017			250,000				250,520
		Bank of New York Mellon		2.2% 15 May 2019			250,000				250,700
		Intesa Sanpaolo SpA		3.125% 15 Jan 2016			250,000				253,953
		Telefonica Emisiones SAU		3.992% 16 Feb 2016			250,000				257,123
		AT&T Inc		5.5% 01 Feb 2018			250,000				275,973
		Fannie Mae		1% 25 Dec 2040			290,758				293,628
		Citibank Credit Card Issuance		1% 26 May 2020			300,000				299,529
		Agilent Technologies Inc		5% 15 Jul 2020			300,000				326,346

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Time Warner Cable Inc		5.85% 01 May 2017			300,000				327,465
		Morgan Stanley		6.625% 01 Apr 2018			300,000				341,712
		Rogers Communications Inc.		6.8% 15 Aug 2018			300,000				346,242
		Fannie Mae		1% 25 Sep 2041			350,606				353,705
		BWU00A2C7 IRS USD RV 03MLIBOR		1% 04 Sep 2024			400,000				400,000
		Goldman Sachs Group Inc		7.5% 15 Feb 2019			350,000				416,311
		JPMorgan Chase & Co		6% 15 Jan 2018			400,000				447,536
		US Treasury N/B		0.25% 28 Feb 2015			500,000				500,135
		Freddie Mac		1% 15 Nov 2040			516,290				521,439
*		Bank of America Corp		6.875% 25 Apr 2018			500,000				574,290
		Government National Mortgage A		1% 20 Dec 2042			726,307				729,186
		US Treasury N/B		0.625% 15 Feb 2017			800,000				798,000
		WI Treasury Sec		0.25% 31 Mar 2015			800,000				800,280
		Fannie Mae		1% 27 Sep 2017			1,400,000				1,397,186
		US Treasury N/B		0.375% 30 Apr 2016			1,600,000				1,599,744
		US Treasury N/B		1% 15 Sep 2017			1,700,000				1,700,935
		Tsy Infl IX N/B		0.125% 15 Apr 2018			2,157,162				2,149,073
		Federal Farm Credit Bank		0.21% 21 Apr 2015			4,100,000				4,101,025
		Various Receivables									2,081,399
		Various Insurance Companies		Synthetic Wrap Agreements***							349,310
		Total Return Tier Global Wrap:
		Voya Retirement Ins. & Annuity Co.		Synthetic GIC, 2.69%, opened			57,157,254
		Transamerica Premier Life Insurance Co.		Synthetic GIC, 2.69%, opened			57,157,254
		Underlying Security Description:
		GEM Trust Opportunistic 3		4,162,578.8526 units of participation							67,115,777
		US Dollar		CASH			214,368				214,368
*		State Street SSgA		0.007% 31 Dec 2030 Gov. Short Term Invest. Fund			18,988,110				18,988,110
		FNMA Pool 987022		5.5% 01 Aug 2038			384				429
		Fannie Mae		9.99% 25 Sep 2017			906				958
		Owens Corning		6.5% 01 Dec 2016			1,000				1,090
		FNMA Pool 928560		5.5% 01 Jul 2037			4,478				5,004
		FNMA Pool 906693		5.5% 01 Dec 2036			6,059				6,786
		Zions Bancorporation		4.5% 13 Jun 2023			7,000				7,390

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Fed Hm Ln Pc Pool A73704		5% 01 Mar 2038			7,717				8,506
		Credit Suisse First Boston Mor		6% 25 Nov 2018			9,512				9,959
		Fannie Mae		8.5% 25 Sep 2021			10,077				11,378
		Credit Suisse First Boston Mor		5% 25 Apr 2019			12,818				13,072
		Hartford Finl Svcs Grp		5.375% 15 Mar 2017			15,000				16,203
		FNMA Pool 900012		5.5% 01 Sep 2036			14,818				16,558
		Crane Co		4.45% 15 Dec 2023			16,000				16,868
		FNMA Pool 906868		5.5% 01 Dec 2036			15,598				17,429
		Bemis Company Inc		6.8% 01 Aug 2019			15,000				17,649
		Entergy Mississippi Inc		6.64% 01 Jul 2019			15,000				17,659
		Fannie Mae		0.01% 09 Oct 2019			21,000				18,880
		Panhandle East Pipe Line		8.125% 01 Jun 2019			16,000				19,417
		Intl Bk Recon & Develop		0.01% 15 Feb 2015			21,000				20,985
		Comcast Corp		5.7% 15 May 2018			19,000				21,395
		Valspar Corp		6.05% 01 May 2017			20,000				21,852
		Oracle Corp		5.75% 15 Apr 2018			20,000				22,609
		Petrobras Global Finance		5.375% 27 Jan 2021			25,000				23,164
		Amazon.com Inc		2.5% 29 Nov 2022			25,000				23,663
		Metlife Inc		7.717% 15 Feb 2019			20,000				24,235
		Agilent Technologies Inc		3.2% 01 Oct 2022			25,000				24,372
		Clorox Company		3.05% 15 Sep 2022			25,000				24,790
		Time Warner Cable Inc		3.5% 01 Feb 2015			25,000				25,048
		Southwest Airlines Co		2.75% 06 Nov 2019			25,000				25,115
		Yale University		2.086% 15 Apr 2019			25,000				25,122
		Ralph Lauren Corp		2.125% 26 Sep 2018			25,000				25,183
		Morgan Stanley		3.7% 23 Oct 2024			25,000				25,341
		Arrow Electronics Inc		3.375% 01 Nov 2015			25,000				25,451
		Dr Pepper Snapple Group		2.9% 15 Jan 2016			25,000				25,504
		Verizon Communications		3.45% 15 Mar 2021			25,000				25,551
		Lab Corp of Amer Hldgs		3.75% 23 Aug 2022			25,000				25,577
		NVR Inc		3.95% 15 Sep 2022			25,000				25,643
		HCP Inc		3.75% 01 Feb 2016			25,000				25,694
		Dun & Bradstreet Corp		3.25% 01 Dec 2017			25,000				25,705
		Heineken NV		3.4% 01 Apr 2022			25,000				25,705
		Becton Dickinson and Co		3.734% 15 Dec 2024			25,000				25,740
		Jones Lang LaSalle Inc		4.4% 15 Nov 2022			25,000				25,946

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Ecopetrol SA		5.875% 18 Sep 2023			25,000				26,469
		GNMA Pool 708581		4.5% 15 Apr 2039			24,220				26,480
		Advance Auto Parts Inc		4.5% 15 Jan 2022			25,000				26,538
		Arcelormittal		7% 25 Feb 2022			25,000				26,688
		Duke Realty LP		5.95% 15 Feb 2017			25,000				27,109
		Sunoco Logistics Partner		5.5% 15 Feb 2020			25,000				27,350
		Federal Home Loan Bank		4.625% 09 Mar 2018			25,000				27,541
		Goldman Sachs Group Inc		5.375% 15 Mar 2020			25,000				28,018
		Petroleos Mexicanos		6% 05 Mar 2020			25,000				28,063
		Kinross Gold Corp		5.95% 15 Mar 2024			30,000				28,150
		Airgas Inc		3.65% 15 Jul 2024			28,000				28,612
		Talisman Energy		7.75% 01 Jun 2019			25,000				28,797
		Duke Energy Carolinas		7% 15 Nov 2018			25,000				29,636
		Marathon Oil Corp		6.8% 15 Mar 2032			25,000				30,259
		Anheuser Busch Inbev Wor		7.75% 15 Jan 2019			25,000				30,281
		Alleghany Corp		5.625% 15 Sep 2020			27,000				30,313
		Bear Stearns Cos LLC		5.3% 30 Oct 2015			30,000				31,100
		Valero Energy Corp		9.375% 15 Mar 2019			25,000				31,178
		DirecTV Holdings		3.95% 15 Jan 2025			31,000				31,244
		Owens Corning		4.2% 01 Dec 2024			32,000				31,580
		Kroger Co		2.95% 01 Nov 2021			32,000				31,738
		Berkshire Hathaway Fin		2.9% 15 Oct 2020			31,000				31,787
		Church & Dwight Co Inc		2.45% 15 Dec 2019			32,000				31,983
		Walgreens Boots Alliance		3.3% 18 Nov 2021			32,000				32,223
		Murphy Oil Corp		3.7% 01 Dec 2022			36,000				32,310
*		Bank of America Corp		6.4% 28 Aug 2017			29,000				32,311
		Medtronic Inc		3.15% 15 Mar 2022			32,000				32,406
		Government Properties In		3.75% 15 Aug 2019			32,000				32,485
		Celgene Corp		3.625% 15 May 2024			32,000				32,676
		Mosaic Co		4.25% 15 Nov 2023			31,000				32,711
		Hartford Finl Svcs Grp		5.5% 30 Mar 2020			29,000				32,773
		Autozone Inc		5.75% 15 Jan 2015			33,000				33,046
		Xerox Corporation		4.25% 15 Feb 2015			33,000				33,130
		CBL & Associates LP		5.25% 01 Dec 2023			31,000				33,216
		Ingersoll Rand Gl Hld Co		2.875% 15 Jan 2019			33,000				33,520
		Southern Co		2.45% 01 Sep 2018			33,000				33,677

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Morgan Stanley Mortgage Loan		1% 25 Apr 2034			32,695				34,483
		Nevada Power Co		6.5% 15 May 2018			30,000				34,561
		Diageo Capital PLC		2.625% 29 Apr 2023			36,000				35,002
		Magellan Midstream Partn		6.55% 15 Jul 2019			30,000				35,055
*		Bank of America Corp		7.8% 15 Sep 2016			32,000				35,220
		Prudential Financial Inc		6.1% 15 Jun 2017			32,000				35,334
		Reynolds American Inc		4.85% 15 Sep 2023			33,000				35,520
		Citigroup Inc		4.75% 19 May 2015			36,000				36,531
		Contl Airlines 1999 2		7.256% 15 Sep 2021			33,074				36,547
		American Intl Group		6.4% 15 Dec 2020			31,000				36,967
		Duke Realty LP		8.25% 15 Aug 2019			30,000				37,011
		American Express Co		8.125% 20 May 2019			30,000				37,111
		Lincoln National Corp		8.75% 01 Jul 2019			30,000				37,486
		Aflac Inc		8.5% 15 May 2019			30,000				37,492
		Empresa Bras de Aeronautica		5.15% 15 Jun 2022			36,000				37,980
		Meccanica Holdings USA		6.25% 15 Jul 2019			35,000				38,150
		Hershey Company		1.5% 01 Nov 2016			40,000				40,470
		Kellogg Co		1.875% 17 Nov 2016			40,000				40,553
		Metlife Inc		6.817% 15 Aug 2018			35,000				40,723
		FNMA Pool AA0654		5.5% 01 Dec 2038			37,488				41,890
		Biomed Realty LP		6.125% 15 Apr 2020			37,000				42,155
		Natl Retail Properties		6.875% 15 Oct 2017			38,000				42,831
		Time Warner Inc		4.875% 15 Mar 2020			39,000				42,913
		PSEG Power LLC		2.75% 15 Sep 2016			42,000				43,043
		Toronto Dominion Bank		2.625% 10 Sep 2018			42,000				43,067
		Time Warner Inc		3.15% 15 Jul 2015			43,000				43,601
		JP Morgan Mortgage Trust		1% 25 Jun 2034			44,783				44,271
		Buckeye Partners LP		4.15% 01 Jul 2023			46,000				44,831
		HCC Insurance Holding		6.3% 15 Nov 2019			39,000				45,018
		Diageo Capital PLC		5.5% 30 Sep 2016			42,000				45,201
		Autozone Inc		6.95% 15 Jun 2016			44,000				47,649
		WPP Finance 2010		3.75% 19 Sep 2024			48,000				48,177
		Rogers Communications Inc		4.1% 01 Oct 2023			46,000				48,329
		Portigon AG/New York		4.796% 15 Jul 2015			48,000				48,925
		Nabisco Inc		7.55% 15 Jun 2015			48,000				49,156
		Fed Hm Ln Pc Pool G04832		5% 01 Oct 2038			44,658				49,227

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Contl Airlines 2007 1		5.983% 19 Oct 2023			45,408				49,835
		Thermo Fisher Scientific		4.15% 01 Feb 2024			48,000				50,620
		Agilent Technologies Inc		6.5% 01 Nov 2017			46,000				51,059
		American Intl Group		4.125% 15 Feb 2024			48,000				51,096
		CSX Corp		7.375% 01 Feb 2019			43,000				51,493
*		Bank of America Corp		6.875% 25 Apr 2018			45,000				51,686
		Empresa Nacional de Elec		8.625% 01 Aug 2015			50,000				52,009
		San Diego G&E		3.6% 01 Sep 2023			50,000				52,567
		Principal Financial Group		8.875% 15 May 2019			42,000				52,845
		Reinsurance Grp of America		4.7% 15 Sep 2023			50,000				53,728
		Metlife Inc		4.368% 15 Sep 2023			50,000				54,520
		Simon Property Group LP		2.8% 30 Jan 2017			53,000				54,577
		Abbey Natl Treasury Serv		2.35% 10 Sep 2019			55,000				54,815
		Thermo Fisher Scientific		3.3% 15 Feb 2022			55,000				55,091
		FNMA Pool AP8545		3% 01 Sep 2042			54,433				55,174
		Niagara Mohawk Power		4.881% 15 Aug 2019			50,000				55,300
		First Niagara Fin Grp		6.75% 19 Mar 2020			50,000				55,493
		Axis Specialty Finance		5.875% 01 Jun 2020			50,000				56,639
		Bank of America Corp		6.5% 15 Jul 2018			50,000				57,020
		Time Warner Inc		4.7% 15 Jan 2021			55,000				60,201
		Ecopetrol SA		4.125% 16 Jan 2025			64,000				60,800
		Tsy Infl IX N/B		2.375% 15 Jan 2017			58,873				61,766
		Sprint Capital Corp		8.75% 15 Mar 2032			65,000				62,888
		Landwirtsch. Rentenbank		3.125% 15 Jul 2015			62,000				62,913
		Royal Bk Scotlnd Grp PLC		4.7% 03 Jul 2018			61,000				63,131
		Contl Airlines 2000 1		8.048% 01 May 2022			56,464				64,013
		Time Warner Inc		4.05% 15 Dec 2023			63,000				66,090
		Becton Dickinson and Co		5% 15 May 2019			60,000				66,353
		Assurant Inc		6.75% 15 Feb 2034			55,000				67,562
		Housing Urban Developmnt		2.96% 01 Aug 2024			66,000				67,857
		Kohl’s Corporation		4.75% 15 Dec 2023			67,000				71,707
		Nomura Holdings Inc		5% 04 Mar 2015			73,000				73,521
		FNMA Pool 905648		5.5% 01 Dec 2036			66,181				74,665
		CRH America Inc		8.125% 15 Jul 2018			63,000				75,398
		Qwest Capital Funding		6.875% 15 Jul 2028			76,000				76,000
		Lennox International Inc		4.9% 15 May 2017			74,000				77,343

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Fanniemae Aces		1% 25 Dec 2038			76,403				77,711
		Cincinnati Finl Corp		6.125% 01 Nov 2034			65,000				77,837
		Methanex Corp		4.25% 01 Dec 2024			79,000				78,655
		Fed Hm Ln Pc Pool A78453		5% 01 Jul 2038			71,586				78,910
		Southern Cal Edison		3.5% 01 Oct 2023			76,000				79,891
		Suncorp Metway LTD		1.7% 28 Mar 2017			80,000				79,944
		Coca Cola Co		2.45% 01 Nov 2020			79,000				80,025
		Comerica Inc		4.8% 01 May 2015			80,000				81,072
		FNMA Pool AB0194		5.5% 01 Jan 2039			73,564				82,203
		Stanley Black & Decker I		3.4% 01 Dec 2021			80,000				83,210
		Boston Scientific Corp		6.25% 15 Nov 2015			80,000				83,335
		J.M. Smucker Co		3.5% 15 Oct 2021			80,000				83,363
		Toyota Motor Credit Corp		4.25% 11 Jan 2021			76,000				83,372
		Macquarie Bank LTD		2.6% 24 Jun 2019			83,000				83,696
		Mass Mutual Life Ins Co		5.625% 15 May 2033			70,000				85,271
		Pub Svc Elec & Gas		9.25% 01 Jun 2021			65,000				85,509
		Johnson Controls Inc		2.6% 01 Dec 2016			84,000				86,090
		Allegheny Ludlum Corp		6.95% 15 Dec 2025			79,000				86,121
		Ventas Realty LP/Cap Crp		4.75% 01 Jun 2021			80,000				86,952
		Abbey Natl Treasury Serv		3.05% 23 Aug 2018			84,000				86,967
		Joy Global Inc		5.125% 15 Oct 2021			81,000				88,497
		FNMA Pool AT2717		2.5% 01 May 2043			92,410				90,349
		Flowers Foods Inc		4.375% 01 Apr 2022			86,000				90,606
		Burlingtn North Santa Fe		7% 15 Dec 2025			70,000				91,263
		FNMA Pool 889608		1% 01 Mar 2038			82,641				92,868
		FNMA Pool AS0331		3% 01 Aug 2043			94,319				95,531
		FNMA Pool 995581		1% 01 Jan 2039			84,770				96,288
		Fico Strip Prin		0.01% 30 Nov 2017			100,000				96,383
		Tyson Foods Inc		7% 01 May 2018			86,000				97,140
		Kroger Co		6.4% 15 Aug 2017			87,000				97,243
		Financing Corp		9.4% 08 Feb 2018			80,000				99,503
		Aid Israel		5.5% 18 Sep 2023			81,000				99,722
		Kroger Co		3.3% 15 Jan 2021			99,000				100,464
		Rabobank Nederland		3.2% 11 Mar 2015			100,000				100,500
		America Movil Sab de CV		3.625% 30 Mar 2015			100,000				100,567
		Morgan Stanley		6% 28 Apr 2015			100,000				101,618

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Procter & Gamble Co		8% 26 Oct 2029			69,000				101,856
		CRH America Inc		4.125% 15 Jan 2016			99,000				101,878
		Santander US Debt SA Uni		3.781% 07 Oct 2015			100,000				102,118
		Morgan Stanley		5.625% 23 Sep 2019			91,000				102,720
		JPMorgan Chase & Co		5.15% 01 Oct 2015			100,000				102,781
		Banco Nac de Desen Econo		5.5% 12 Jul 2020			100,000				103,115
		Midamerican Energy Co		2.4% 15 Mar 2019			103,000				104,581
		Gap Inc		5.95% 12 Apr 2021			95,000				108,111
		GNMA Pool AC9442		4% 15 Jan 2043			100,963				108,414
		Banco Bilbao Vizcaya Arg		5.75% 20 Jul 2017			100,000				109,417
		AT&T Inc		5.5% 01 Feb 2018			100,000				110,389
		Fed Hm Ln Pc Pool Q12591		3% 01 Oct 2042			109,072				110,406
		Government National Mortgage A		1% 16 Nov 2037			99,361				112,551
		PNC Funding Corp		5.25% 15 Nov 2015			113,000				117,113
		FHLMC GNMA		8% 25 Apr 2024			104,158				117,707
		Fannie Mae		4.75% 25 Apr 2035			108,663				118,239
		Verizon Communications		4.5% 15 Sep 2020			109,000				118,348
		Corning Inc		7% 15 May 2024			94,000				120,110
		Hutch Wham Int 09 LTD		7.625% 09 Apr 2019			100,000				120,970
		BBVA Global Finance LTD.		7% 01 Dec 2025			112,000				122,055
		Pearson Funding Two PLC		4% 17 May 2016			120,000				124,733
		FNMA Pool AI9013		5% 01 Aug 2041			116,190				128,687
		LB Baden Wuerttemberg		7.625% 01 Feb 2023			106,000				132,485
		Macquarie Bank LTD		5% 22 Feb 2017			125,000				133,325
		FNMA Pool AL2140		1% 01 Sep 2041			123,763				134,526
		Eastman Chemical Co		7.25% 15 Jan 2024			106,000				134,799
		FNMA Pool MA0622		3.5% 01 Jan 2041			129,880				135,681
		US Treasury N/B		4.25% 15 Nov 2017			125,000				136,319
		Spectra Energy Capital		6.75% 15 Jul 2018			121,000				136,718
		GNMA Pool 727394		4.5% 15 Feb 2040			134,930				147,561
		Sky PLC		9.5% 15 Nov 2018			119,000				149,490
		FNMA TBA 30 Yr 3		3% 14 Jan 2045			150,000				151,734
		Banco Latinoamericano SA		3.75% 04 Apr 2017			150,000				154,500
		Fed Hm Ln Pc Pool Q28042		3.5% 01 Aug 2044			151,647				157,846
		Comm Mortgage Trust		3.528% 10 Dec 2047			154,000				159,338
		EQT Corp		7.75% 15 Jul 2026			130,000				163,612

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
*		Bank of America NA		1% 15 Jun 2016			171,000				169,844
		Fico Strip Ser 19		0.01% 06 Jun 2018			180,000				170,635
		Petroleos Mexicanos		2.83% 15 Feb 2024			168,150				171,019
		Government National Mortgage A		1% 20 Jul 2039			149,492				172,442
		Senior Housing Prop Trus		4.3% 15 Jan 2016			173,000				176,611
		Tsy Infl IX N/B		1.625% 15 Jan 2018			170,016				178,025
		FNMA Pool 991864		6% 01 Oct 2038			157,310				178,374
		GNMA Pool 782920		5.5% 15 Mar 2040			161,189				180,024
		FNMA Pool AB3284		5% 01 Jul 2041			168,658				187,611
		Goldman Sachs Group Inc		5.35% 15 Jan 2016			184,000				192,008
		New York Life Global Fdg		2.15% 18 Jun 2019			195,000				194,620
		US Treasury N/B		1% 30 Jun 2019			200,000				195,172
		US Treasury N/B		1.75% 15 May 2022			200,000				196,610
		Fed Hm Ln Pc Pool G03616		6% 01 Dec 2037			174,829				197,646
		Massmutual Global Funding		2.35% 09 Apr 2019			200,000				201,242
		GS Mortgage Securities Trust		1% 10 Dec 2043			180,000				204,408
		Banco Nac de Desen Econo		5.75% 26 Sep 2023			200,000				206,000
		PTT Explor & Product PCL		3.707% 16 Sep 2018			200,000				206,724
		Landesbk Baden Wurtt NY		5.05% 30 Dec 2015			200,000				207,700
		Ford Motor Credit Co LLC		4.25% 03 Feb 2017			200,000				210,014
		FNMA Pool 975093		5% 01 Jun 2038			191,093				211,984
		Tsy Infl IX N/B		1.75% 15 Jan 2028			198,352				224,556
		UBS Commercial Mortgage Trust		3.4% 10 May 2045			220,000				228,024
		GS Mortgage Securities Trust		3.482% 10 Jan 2045			222,000				231,929
		GNMA Pool AB3021		3% 15 Oct 2042			243,268				249,147
		Comm Mortgage Trust		3.644% 10 Dec 2047			241,000				251,076
		CFCRE Commercial Mortgage Trust		3.061% 15 Dec 2047			250,000				257,130
		FNMA Pool AB5792		3.5% 01 Aug 2042			256,352				267,606
		CFCRE Commercial Mortgage Trust		1% 15 Apr 2044			250,000				279,162
		GNMA Pool 719082		4.5% 15 Nov 2039			256,347				281,082
		FNMA Pool AT2725		3% 01 May 2043			279,168				282,828
		US Treasury N/B		3.5% 15 Feb 2039			250,000				287,130
		Aust & Nz Banking Group		1% 08 Aug 2022			288,000				295,718
		GNMA II Pool 004853		4% 20 Nov 2040			286,867				308,637
		FNMA Pool MA1430		3% 01 May 2043			305,190				309,188
		FHLMC TBA 30 Yr 3.5		3.5% 14 Jan 2045			300,000				311,931

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)		(b) Identity of Issue, Borrower, Lessor or Similar Party		(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value		(d) Cost and Number of Shares/Units**				(e) Current Value
		Santander Issuances		5.911% 20 Jun 2016			300,000				312,639
		Citigroup Inc		8.5% 22 May 2019			253,000				315,256
		GNMA I TBA 30 Yr 4		4% 21 Jan 2045			300,000				321,840
		Fed Hm Ln Pc Pool G06931		6% 01 Aug 2039			289,448				329,678
		Inter American Devel Bk		0.5% 17 Apr 2023			400,000				336,912
		US Treasury N/B		1.625% 15 Nov 2022			350,000				339,528
		Ruta del Maipo Soc Conc		7.373% 15 Jun 2022			314,453				348,112
		GNMA Pool 697946		5% 15 Mar 2039			321,216				355,208
		GNMA Pool 675652		5.5% 15 Nov 2038			325,885				364,111
		Murphy Oil Corporation		7.05% 01 May 2029			320,000				370,278
		GNMA Pool 745068		4.5% 15 Jun 2040			362,058				396,178
		Fed Hm Ln Pc Pool G08587		4.5% 01 May 2044			407,514				442,076
		FNMA Pool AS0305		3% 01 Aug 2043			440,524				446,149
		WI Treasury N/B		2% 31 Aug 2021			450,000				451,373
		Federal Farm Credit Bank		4.85% 29 Jul 2020			400,000				459,760
		Financing Corp		8.6% 26 Sep 2019			358,000				465,701
		Fed Hm Ln Pc Pool Q25977		4.5% 01 May 2044			442,486				479,500
		US Treasury N/B		2.625% 15 Nov 2020			500,000				521,915
		US Treasury N/B		2.625% 15 Aug 2020			500,000				522,150
		FHLMC TBA 30 Yr 3		3% 14 Jan 2045			550,000				555,588
		Financing Corp Fico		9.65% 02 Nov 2018			450,000				584,325
		Aid Israel		5.5% 26 Apr 2024			487,000				603,783
		Fed Hm Ln Pc Pool Q26516		3.5% 01 Jun 2044			627,044				652,677
		GNMA Pool AA8386		4% 15 Mar 2044			704,669				756,666
		FNMA Pool AQ0536		3% 01 Nov 2042			768,328				778,816
		US Treasury N/B		1.375% 30 Sep 2018			800,000				799,248
		FNMA Pool AR1446		3% 01 Jan 2043			798,524				809,336
		Fed Hm Ln Pc Pool G08599		3.5% 01 Aug 2044			801,874				834,655
		US Treasury N/B		1.875% 31 Oct 2017			975,000				997,932
		Freddie Mac		8.25% 01 Jun 2016			1,019,000				1,126,443
		FNMA TBA 30 Yr 3.5		3.5% 14 Jan 2045			1,100,000				1,146,662
		FNMA TBA 30 Yr 4		4% 14 Jan 2045			2,150,000				2,294,588
		30 Yr Us Treasury Note Ftr Optn		FEB15 146 CALL			(2,000)				(1,125)
		30 Yr Us Treasury Note Ftr Optn		FEB15 147 CALL			(2,000)				(688)
		30 Yr Us Treasury Note Ftr Optn		FEB15 145 CALL			2,000				1,844
		Various Payables									(4,566,965)

 

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CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

(Held at End of Year)

December 31, 2014		Supplemental Schedule

 

 

(a)

(b) Identity of Issue, Borrower, Lessor or Similar Party

(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value

(d) Cost and Number of Shares/Units**

(e) Current Value

Various Insurance Companies

Synthetic Wrap Agreements***

(8,244,940)

Total Stable Value Fund

523,601,241

*

Participant Notes Receivable

Interest at 4.25% to 9.25%, maturing through 2024

0

22,606,514

$

1,090,109,710

 

*	Indicates parties-in-interest as defined by ERISA.

**	Cost information is not required for participant-directed investments and, therefore is not included.

***	Represents adjustment to arrive at contract value.

 

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Signatures

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the plan administrator of CONSOL Energy Inc. Investment Plan for Salaried Employees has duly caused this annual report to be signed on its behalf by the undersigned, hereunto duly authorized.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

 

Date: June 18, 2015				By:		/s/ David M. Khani
						David M. Khani
						Chief Financial Officer and Executive     Vice President, CONSOL Energy Inc.
						Plan Administrator

 

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Index to Exhibit

 

Exhibit No.		Description
23		Consent of Independent Registered Public Accounting Firm

 

		42