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Variable Interest Entities | 6 Months Ended
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Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities | VARIABLE INTEREST ENTITIES: The Company determined CNXM, of which the company owns approximately 34%, to be a variable interest entity. Upon completion of the Midstream Acquisition (see Note 6 - Acquisitions and Dispositions) through the Company's ownership and control of CNXM's general partner (CNX Midstream GP LLC), the Company has the power to direct the activities that most significantly impact CNXM's economic performance. In addition, through its limited partner interest and incentive distribution rights, or IDRs, in CNXM, the Company has the obligation to absorb the losses of CNXM and the right to receive benefits in accordance with such interests. As the Company has a controlling financial interest and is the primary beneficiary of CNXM, the Company consolidates CNXM commencing January 3, 2018. The risks associated with the operations of CNXM are discussed in its Annual Reports on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 7, 2018. The following table presents amounts included in the Company's Consolidated Balance Sheet that were for the use or obligation of CNXM as of June 30, 2018:
| June 30, 2018
Assets: |
Cash | $ | 707 |
Receivables - Related Party | 12,072 |
Receivables - Third Party | 7,546 |
Other Current Assets | 2,726 |
Property, Plant and Equipment, net | 792,513 |
Other Assets | 3,494 |
Total Assets | $ | 819,058 |
Liabilities: |
Accounts Payable | $ | 38,327 |
Accounts Payable - Related Party | 3,211 |
Revolving Credit Facility | 11,000 |
Long-Term Debt | 393,169 |
Total Liabilities | $ | 445,707 |
The following table summarizes CNXM's Consolidated Statements of Operations and Cash Flows for the three and six months ended June 30, 2018, inclusive of affiliate amounts:
| For the Three Months Ended |  | For the Six Months Ended
| June 30, 2018 |  | June 30, 2018
Revenue |  |  |
Gathering Revenue - Related Party | $ | 37,576 |  |  | $ | 75,306 |
Gathering Revenue - Third Party | 23,438 |  |  | 49,577 |
Total Revenue | 61,014 |  |  | 124,883 |
Expenses |  |  |
Operating Expense - Related Party | 5,079 |  |  | 9,514 |
Operating Expense - Third Party | 7,406 |  |  | 15,874 |
General and Administrative Expense - Related Party | 3,619 |  |  | 7,232 |
General and Administrative Expense - Third Party | 2,320 |  |  | 4,868 |
(Gain) Loss on Asset Sales | (254 | ) |  | 2,501 |
Depreciation Expense | 5,443 |  |  | 11,299 |
Interest Expense | 7,119 |  |  | 9,608 |
Total Expense | 30,732 |  |  | 60,896 |
Net Income | $ | 30,282 |  |  | $ | 63,987 |
Net Cash Provided by Operating Activities | $ | 53,674 |  |  | $ | 95,541 |
Net Cash Used in Investing Activities | $ | (24,969 | ) |  | $ | (35,125 | )
Net Cash Used in Financing Activities | $ | (29,964 | ) |  | $ | (62,903 | )
In March 2018, CNXM closed its previously announced acquisition of CNX's remaining 95% interest in the gathering system and related assets commonly referred to as the Shirley-Penns System, in exchange for cash consideration in the amount of $265,000. CNXM funded the cash consideration with proceeds from the issuance of 6.5% senior notes due 2026 (See Note 11 - Long-Term Debt). Prior to the acquisition of Noble's interest on January 3, 2018, CNX accounted for its interests in CNX Gathering and CNXM as an equity-method investment. The following is a summary of the Company's Investment in Affiliates balances included within the Consolidated Balance Sheets associated with CNX Gathering and CNXM, respectively:
| CNX Gathering |  | CNXM |  | Total
Balance at December 31, 2016 | $ | 151,075 |  |  | $ | 18,133 |  |  | $ | 169,208 |
Equity in Earnings | 9,823 |  |  | 38,523 |  |  | 48,346 |
Distributions | (17,254 | ) |  | (24,929 | ) |  | (42,183 | )
Asset Transfer | (2,527 | ) |  | 2,527 |  |  | — |
Balance at December 31, 2017 | $ | 141,117 |  |  | $ | 34,254 |  |  | $ | 175,371 |
The following transactions were included in Other Operating Income and Transportation, Gathering and Compression within the Consolidated Statements of Income:
| For the Three Months Ended |  | For the Six Months Ended
| June 30, 2017 |  | June 30, 2017
Other Operating Income: |  |  |
Equity in Earnings of Affiliates - CNX Gathering | $ | 284 |  |  | $ | 2,150 |
Equity in Earnings of Affiliates - CNXM | $ | 9,712 |  |  | $ | 19,784 |
Transportation, Gathering and Compression: |  |  |
Gathering Services - CNX Gathering | $ | 232 |  |  | $ | 485 |
Gathering Services - CNXM | $ | 31,695 |  |  | $ | 65,749 |
At June 30, 2018 and December 31, 2017, CNX had a net payable of $9,495 and $9,982 respectively due to both CNX Gathering and CNXM, primarily for accrued but unpaid gathering services.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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