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Derivative Instruments | 9 Months Ended
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Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTS: In June 2019, CNX entered into an interest rate swap agreement to manage its exposure to interest rate volatility. The interest rate swap agreement relates to $160,000 of borrowings under CNX’s senior secured revolving credit facility (See Note 9 - Revolving Credit Facilities) and has the economic effect of modifying the variable-interest obligation into a fixed-interest obligation over a three-year period. The change in fair value of the interest rate swap agreement is accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings. The fair value at September 30, 2019 and the corresponding change in fair value from inception through September 30, 2019 was nominal. CNX enters into financial derivative instruments to manage its exposure to commodity price volatility. These natural gas commodity hedges are accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings. CNX is exposed to credit risk in the event of non-performance by counterparties. The creditworthiness of counterparties is subject to continuing review. The Company has not experienced any issues of non-performance by derivative counterparties. None of the Company's counterparty master agreements currently require CNX to post collateral for any of its positions. However, as stated in the counterparty master agreements, if CNX's obligations with one of its counterparties cease to be secured on the same basis as similar obligations with the other lenders under the credit facility, CNX would have to post collateral for instruments in a liability position in excess of defined thresholds. All of the Company's derivative instruments are subject to master netting arrangements with our counterparties. CNX recognizes all financial derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets on a gross basis. Each of the Company's counterparty master agreements allows, in the event of default, the ability to elect early termination of outstanding contracts. If early termination is elected, CNX and the applicable counterparty would net settle all open hedge positions. The total notional amounts of production of CNX's derivative instruments were as follows:
| September 30, |  | December 31, |  | Forecasted to
| 2019 |  | 2018 |  | Settle Through
Natural Gas Commodity Swaps (Bcf) | 1,502.4 |  |  | 1,484.4 |  |  | 2024
Natural Gas Basis Swaps (Bcf) | 1,240.5 |  |  | 1,056.6 |  |  | 2024
The gross fair value of CNX's derivative instruments was as follows:
Asset Derivative Instruments |  | Liability Derivative Instruments
| September 30, |  | December 31, |  |  | September 30, |  | December 31,
| 2019 |  | 2018 |  |  | 2019 |  | 2018
Commodity Swaps: |  |  |  |  |  |  |  |
Prepaid Expense | $ | 172,836 |  |  | $ | 28,612 |  |  | Other Accrued Liabilities | $ | 1,389 |  |  | $ | 34,640 |
Other Assets | 254,967 |  |  | 164,310 |  |  | Other Liabilities | 17,440 |  |  | 52,011 |
Total Asset | $ | 427,803 |  |  | $ | 192,922 |  |  | Total Liability | $ | 18,829 |  |  | $ | 86,651 |
Basis Only Swaps: |  |  |  |  |  |  |  |
Prepaid Expense | $ | 25,420 |  |  | $ | 11,628 |  |  | Other Accrued Liabilities | $ | 43,437 |  |  | $ | 27,021 |
Other Assets | 20,925 |  |  | 48,788 |  |  | Other Liabilities | 98,638 |  |  | 40,210 |
Total Asset | $ | 46,345 |  |  | $ | 60,416 |  |  | Total Liability | $ | 142,075 |  |  | $ | 67,231 |
The effect of derivative instruments on the Company's Consolidated Statements of Income was as follows:
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, |  | September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Cash Received (Paid) in Settlement of Commodity Derivative Instruments: |  |  |  |  |  |  |
Natural Gas: |  |  |  |  |  |  |
Commodity Swaps | $ | 61,441 |  |  | $ | 6,916 |  |  | $ | 53,058 |  |  | $ | 23,540 |
Basis Swaps | (4,400 | ) |  | (4,091 | ) |  | (26,727 | ) |  | (21,022 | )
Total Cash Received in Settlement of Commodity Derivative Instruments | 57,041 |  |  | 2,825 |  |  | 26,331 |  |  | 2,518 |
Unrealized Gain (Loss) on Commodity Derivative Instruments: |  |  |  |  |  |  |
Natural Gas: |  |  |  |  |  |  |
Commodity Swaps | 126,617 |  |  | 27,749 |  |  | 302,701 |  |  | 76,999 |
Basis Swaps | 30,255 |  |  | (12,569 | ) |  | (88,914 | ) |  | (765 | )
Total Unrealized Gain on Commodity Derivative Instruments | 156,872 |  |  | 15,180 |  |  | 213,787 |  |  | 76,234 |
Gain (Loss) on Commodity Derivative Instruments: |  |  |  |  |  |  |
Natural Gas: |  |  |  |  |  |  |
Commodity Swaps | 188,058 |  |  | 34,665 |  |  | 355,759 |  |  | 100,539 |
Basis Swaps | 25,855 |  |  | (16,660 | ) |  | (115,641 | ) |  | (21,787 | )
Total Gain on Commodity Derivative Instruments | $ | 213,913 |  |  | $ | 18,005 |  |  | $ | 240,118 |  |  | $ | 78,752 |
The Company also enters into fixed price natural gas sales agreements that are satisfied by physical delivery. These physical commodity contracts qualify for the normal purchases and normal sales exception and are not subject to derivative instrument accounting.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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