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Segment Information | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION: CNX consists of two principal business divisions: Exploration and Production (E&P) and Midstream. The principal activity of the E&P Division, which includes four reportable segments, is to produce pipeline quality natural gas for sale primarily to gas wholesalers. The E&P Division's reportable segments are Marcellus Shale, Utica Shale, Coalbed Methane, and Other Gas. The Other Gas Segment is primarily related to shallow oil and gas production which is not significant to the Company due to sale of substantially all of CNX's shallow oil and gas assets in the 2018 period (See Note 5 - Acquisitions and Dispositions for more information). It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, exploration and production related other costs, as well as various other operating activities assigned to the E&P Division but not allocated to each individual segment. CNX's Midstream Division's principal activity is the ownership, operation, development and acquisition of natural gas gathering and other midstream energy assets of CNX Gathering and CNXM, which provide natural gas gathering services for the Company's produced gas, as well as for other independent third-parties in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. Excluded from the Midstream Division are the gathering assets and operations of CNX that have not been contributed to CNX Gathering and CNXM. As a result of the Midstream Acquisition (See Note 5 - Acquisitions and Dispositions for more information), CNX owns and controls 100% of CNX Gathering, making CNXM a single-sponsor master limited partnership and thus the Company began consolidating CNXM on January 3, 2018. The Company's unallocated expenses include other expense, gain on asset sales related to non-core assets, gain on previously held equity interest, loss on debt extinguishment, impairment of other intangible assets and income taxes. In the preparation of the following information, intersegment sales have been recorded at amounts approximating market prices. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses. Assets are reflected at the division level for E&P and are not allocated between each individual E&P segment. These assets are not allocated to each individual segment due to the diverse asset base controlled by CNX, whereby each individual asset may service more than one segment within the division. An allocation of such asset base would not be meaningful or representative on a segment by segment basis. Industry segment results for the three months ended June 30, 2019:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGLs and Oil Revenue | $ | 237,257 |  |  | $ | 65,213 |  |  | $ | 39,638 |  |  | $ | 757 |  |  | $ | 342,865 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 342,865 |  | (A)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 18,768 |  |  | 18,768 |  |  | — |  |  | — |  |  | — |  |  | 18,768 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 78,450 |  |  | — |  |  | (59,555 | ) |  | 18,895 |  |
Gain on Commodity Derivative Instruments | 6,831 |  |  | 2,747 |  |  | 1,085 |  |  | 210,918 |  |  | 221,581 |  |  | — |  |  | — |  |  | — |  |  | 221,581 |  |
Other Operating Income | — |  |  | — |  |  | — |  |  | 3,038 |  |  | 3,038 |  |  | — |  |  | — |  |  | (115 | ) |  | 2,923 |  | (B)
Total Revenue and Other Operating Income | $ | 244,088 |  |  | $ | 67,960 |  |  | $ | 40,723 |  |  | $ | 233,481 |  |  | $ | 586,252 |  |  | $ | 78,450 |  |  | $ | — |  |  | $ | (59,670 | ) |  | $ | 605,032 |  |
Earnings Before Income Tax | $ | 50,381 |  |  | $ | 17,941 |  |  | $ | 7,603 |  |  | $ | 112,335 |  |  | $ | 188,260 |  |  | $ | 44,414 |  |  | $ | 811 |  |  | $ | — |  |  | $ | 233,485 |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,887,043 |  |  | $ | 2,116,492 |  |  | $ | 146,203 |  |  | $ | (3,041 | ) |  | $ | 9,146,697 |  | (C)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 120,705 |  |  | $ | 8,294 |  |  | $ | — |  |  |  |  |  | $ | 128,999 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 224,684 |  |  | $ | 104,543 |  |  | $ | — |  |  | $ | — |  |  | $ | 329,227 |  |
(A) | Included in Total Natural Gas, NGLs and Oil Revenue are sales of $48,476 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with customers for the period.
(B) | Includes equity in earnings of unconsolidated affiliates of $527 for Total E&P.
(C) | Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P.
Industry segment results for the three months ended June 30, 2018:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGLs and Oil Revenue | $ | 178,305 |  |  | $ | 107,758 |  |  | $ | 46,882 |  |  | $ | 1,572 |  |  | $ | 334,517 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 334,517 |  | (D)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 9,930 |  |  | 9,930 |  |  | — |  |  | — |  |  | — |  |  | 9,930 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 61,325 |  |  | — |  |  | (37,842 | ) |  | 23,483 |  |
Gain on Commodity Derivative Instruments | 9,128 |  |  | 5,371 |  |  | 2,155 |  |  | 9,006 |  |  | 25,660 |  |  | — |  |  | — |  |  | — |  |  | 25,660 |  |
Other Operating Income | — |  |  | — |  |  | — |  |  | 8,595 |  |  | 8,595 |  |  | — |  |  | — |  |  | (61 | ) |  | 8,534 |  | (E)
Total Revenue and Other Operating Income | $ | 187,433 |  |  | $ | 113,129 |  |  | $ | 49,037 |  |  | $ | 29,103 |  |  | $ | 378,702 |  |  | $ | 61,325 |  |  | $ | — |  |  | $ | (37,903 | ) |  | $ | 402,124 |  |
Earnings (Loss) Before Income Tax | $ | 47,273 |  |  | $ | 46,486 |  |  | $ | 12,405 |  |  | $ | (64,039 | ) |  | $ | 42,125 |  |  | $ | 27,795 |  |  | $ | (39,628 | ) |  | $ | — |  |  | $ | 30,292 |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,055,545 |  |  | $ | 1,830,007 |  |  | $ | 333,372 |  |  | $ | (11,166 | ) |  | $ | 8,207,758 |  | (F)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 111,125 |  |  | $ | 7,962 |  |  | $ | — |  |  | $ | — |  |  | $ | 119,087 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 238,889 |  |  | $ | 25,285 |  |  | $ | — |  |  | $ | — |  |  | $ | 264,174 |  |
(D) | Included in Total Natural Gas, NGLs and Oil Revenue are sales of $36,849 to NJR Energy Services Company and $34,644 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with customers for the period.
(E) | Includes equity in earnings of unconsolidated affiliates of $1,669 for Total E&P.
(F) | Includes investments in unconsolidated equity affiliates of $22,347 for Total E&P.
Industry segment results for the six months ended June 30, 2019:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGLs and Oil Revenue | $ | 530,514 |  |  | $ | 158,164 |  |  | $ | 89,473 |  |  | $ | 660 |  |  | $ | 778,811 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 778,811 |  | (A)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 34,989 |  |  | 34,989 |  |  | — |  |  | — |  |  | — |  |  | 34,989 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 151,019 |  |  | — |  |  | (113,681 | ) |  | 37,338 |  |
(Loss) Gain on Commodity Derivative Instruments | (20,627 | ) |  | (6,854 | ) |  | (3,217 | ) |  | 56,903 |  |  | 26,205 |  |  | — |  |  | — |  |  | — |  |  | 26,205 |  |
Other Operating Income | — |  |  | — |  |  | — |  |  | 6,296 |  |  | 6,296 |  |  | — |  |  | — |  |  | (176 | ) |  | 6,120 |  | (B)
Total Revenue and Other Operating Income | $ | 509,887 |  |  | $ | 151,310 |  |  | $ | 86,256 |  |  | $ | 98,848 |  |  | $ | 846,301 |  |  | $ | 151,019 |  |  | $ | — |  |  | $ | (113,857 | ) |  | $ | 883,463 |  |
Earnings (Loss) Before Income Tax | $ | 137,312 |  |  | $ | 49,945 |  |  | $ | 20,502 |  |  | $ | (125,929 | ) |  | $ | 81,830 |  |  | $ | 76,998 |  |  | $ | (1,553 | ) |  | $ | — |  |  | $ | 157,275 |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,887,043 |  |  | $ | 2,116,492 |  |  | $ | 146,203 |  |  | $ | (3,041 | ) |  | $ | 9,146,697 |  | (C)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 237,780 |  |  | $ | 16,379 |  |  | $ | — |  |  | $ | — |  |  | $ | 254,159 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 448,475 |  |  | $ | 179,890 |  |  | $ | — |  |  | $ | — |  |  | $ | 628,365 |  |
(A) | Included in Total Natural Gas, NGLs and Oil Revenue are sales of $116,245 to Direct Energy Business Marketing LLC and $94,447 to NJR Energy Services Company, each of which comprise over 10% of revenue from contracts with customers for the period.
(B) | Includes equity in earnings of unconsolidated affiliates of $1,030 for Total E&P.
(C) | Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P.
Industry segment results for the six months ended June 30, 2018:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGLs and Oil Revenue | $ | 383,321 |  |  | $ | 238,080 |  |  | $ | 104,383 |  |  | $ | 14,356 |  |  | $ | 740,140 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 740,140 |  | (D)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 27,985 |  |  | 27,985 |  |  | — |  |  | — |  |  | — |  |  | 27,985 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 125,503 |  |  | — |  |  | (75,766 | ) |  | 49,737 |  |
(Loss) Gain on Commodity Derivative Instruments | (385 | ) |  | 897 |  |  | (275 | ) |  | 60,510 |  |  | 60,747 |  |  | — |  |  | — |  |  | — |  |  | 60,747 |  |
Other Operating Income | — |  |  | — |  |  | — |  |  | 19,386 |  |  | 19,386 |  |  | — |  |  | — |  |  | (142 | ) |  | 19,244 |  | (E)
Total Revenue and Other Operating Income | $ | 382,936 |  |  | $ | 238,977 |  |  | $ | 104,108 |  |  | $ | 122,237 |  |  | $ | 848,258 |  |  | $ | 125,503 |  |  | $ | — |  |  | $ | (75,908 | ) |  | $ | 897,853 |  |
Earnings (Loss) Before Income Tax | $ | 91,515 |  |  | $ | 102,593 |  |  | $ | 25,522 |  |  | $ | (77,695 | ) |  | $ | 141,935 |  |  | $ | 63,329 |  |  | $ | 584,268 |  |  | $ | — |  |  | $ | 789,532 |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,055,545 |  |  | $ | 1,830,007 |  |  | $ | 333,372 |  |  | $ | (11,166 | ) |  | $ | 8,207,758 |  | (F)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 226,991 |  |  | $ | 16,763 |  |  | $ | — |  |  | $ | — |  |  | $ | 243,754 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 455,397 |  |  | $ | 41,262 |  |  | $ | — |  |  | $ | — |  |  | $ | 496,659 |  |
(D) | Included in Total Natural Gas, NGLs and Oil Revenue are sales of $115,845 to NJR Energy Services Company and $92,571 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with customers for the period.
(E) | Includes equity in earnings of unconsolidated affiliates of $3,447 for Total E&P.
(F) Includes investments in unconsolidated equity affiliates of $22,347 for Total E&P. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
2019 |  | 2018 |  | 2019 |  | 2018
Total Segment Revenue from Contracts with External Customers | $ | 380,528 |  |  | $ | 367,930 |  |  | $ | 851,138 |  |  | $ | 817,862 |
Gain on Commodity Derivative Instruments | 221,581 |  |  | 25,660 |  |  | 26,205 |  |  | 60,747 |
Other Operating Income | 2,923 |  |  | 8,534 |  |  | 6,120 |  |  | 19,244 |
Total Consolidated Revenue and Other Operating Income | $ | 605,032 |  |  | $ | 402,124 |  |  | $ | 883,463 |  |  | $ | 897,853 |
Earnings Before Income Tax:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Segment Income Before Income Taxes for Reportable Business Segments: |  |  |  |  |  |  |
Total E&P | $ | 188,260 |  |  | $ | 42,125 |  |  | $ | 81,830 |  |  | $ | 141,935 |
Midstream | 44,414 |  |  | 27,795 |  |  | 76,998 |  |  | 63,329 |
Total Segment Income Before Income Taxes for Reportable Business Segments | $ | 232,674 |  |  | $ | 69,920 |  |  | $ | 158,828 |  |  | $ | 205,264 |
Unallocated Expenses: |  |  |  |  |  |  |
Other Income (Expense) | 501 |  |  | (575 | ) |  | 1,531 |  |  | 5,917 |
Gain on Certain Asset Sales | 387 |  |  | 3,010 |  |  | 4,530 |  |  | 12,386 |
Gain on Previously Held Equity Interest | — |  |  | — |  |  | — |  |  | 623,663 |
Loss on Debt Extinguishment | (77 | ) |  | (23,413 | ) |  | (7,614 | ) |  | (39,048 | )
Impairment of Other Intangible Assets | — |  |  | (18,650 | ) |  | — |  |  | (18,650 | )
Earnings Before Income Tax | $ | 233,485 |  |  | $ | 30,292 |  |  | $ | 157,275 |  |  | $ | 789,532 |
Total Assets:
| June 30,
2019 |  | 2018
Segment Assets for Total Reportable Business Segments: |  |  |
E&P | $ | 6,887,043 |  |  | $ | 6,055,545 |
Midstream | 2,116,492 |  |  | 1,830,007 |
Intercompany Eliminations | (3,041 | ) |  | (11,166 | )
Items Excluded from Segment Assets: |  |  |
Cash and Cash Equivalents | 32,611 |  |  | 54,846 |
Recoverable Income Taxes | 113,592 |  |  | 27,780 |
Assets Held for Sale | — |  |  | 250,746 |
Total Consolidated Assets | $ | 9,146,697 |  |  | $ | 8,207,758 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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