Variable Interest Entities

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES:

The Company determined CNXM, of which the Company owned an approximately 34% limited partner interest (prior to the IDR Elimination transaction - See Note 25 - Subsequent Event) and 100% of the general partner interest, to be a variable interest entity. As a result of the Midstream Acquisition (see Note 6 - Acquisitions and Dispositions), the Company has the power through the Company's ownership and control of CNXM's general partner (CNX Midstream GP LLC) to direct the activities that most significantly impact CNXM's economic performance. In addition, through its limited partner interest 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 consolidated CNXM commencing January 3, 2018.

The risks associated with the operations of CNXM are discussed in its Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 10, 2020 and its other periodic reports filed thereafter.

The following table presents amounts included in the Company's Consolidated Balance Sheets that were for the use or obligation of CNXM:



	December 31,
	2019		2018
Assets:
Cash	$	31	$	3,966
Receivables - Related Party	21,076		17,073
Receivables - Third Party	7,935		7,028
Other Current Assets	1,976		2,383
Property, Plant and Equipment, net	1,195,591		891,775
Operating Lease ROU Asset	4,731		—
Other Assets	3,262		3,203
Total Assets	$	1,234,602	$	925,428
Liabilities:
Accounts Payable and Accrued Liabilities	$	67,290	$	43,919
Accounts Payable - Related Party	4,787		4,980
Revolving Credit Facility	311,750		84,000
Long-Term Debt	394,162		393,215
Total Liabilities	$	777,989	$	526,114

The following table summarizes CNXM's Consolidated Statements of Operations and Cash Flows, inclusive of affiliate amounts:



	For the Years Ended December 31,
	2019			2018
Revenue
Gathering Revenue - Related Party	$	231,482		$	167,048
Gathering Revenue - Third Party	74,315			89,620
Total Revenue	305,797			256,668
Expenses
Operating Expense - Related Party	22,943			19,814
Operating Expense - Third Party	23,964			27,343
General and Administrative Expense - Related Party	15,928			13,867
General and Administrative Expense - Third Party	5,769			8,595
Loss on Asset Sales and Abandonments, net	7,229			2,501
Depreciation Expense	24,371			21,939
Interest Expense	30,293			23,614
Total Expense	130,497			117,673
Net Income	$	175,300		$	138,995

Net Cash Provided by Operating Activities	$	217,062		$	180,115
Net Cash Used in Investing Activities	$	(327,615	)	$	(138,869	)
Net Cash Provided by (Used in) Financing Activities	$	106,618		$	(40,474	)

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 transactions were included in Other Operating Income and Transportation, Gathering and Compression in the Consolidated Statements of Income:



	For the Year Ended
	December 31, 2017
Other Operating Income:
Equity in Earnings of Affiliates - CNX Gathering	$	9,823
Equity in Earnings of Affiliates - CNXM	$	38,523

Transportation, Gathering and Compression:
Gathering Services - CNX Gathering	$	914
Gathering Services - CNXM	$	136,068

In March 2018, CNXM closed on its 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 considerations with proceeds from the issuance of its 6.50% senior notes due 2026 (See Note 14 - Long-Term Debt).

At December 31, 2019 and 2018, CNX had a net payable of $16,362 and $12,202, respectively, due to CNX Gathering and CNXM, primarily for accrued but unpaid gathering services.