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Segment Information
 6 Months Ended
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