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Segment Information | 6 Months Ended
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Jun. 30, 2020
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. It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, realized gain on commodity derivative instruments that were monetized prior to their settlement dates, exploration and production related other costs, impairments of exploration and production properties, 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. CNX owns and controls 100% of CNX Gathering, making CNXM a single-sponsor master limited partnership and thus the Company consolidates CNXM. The Midstream Division is comprised of a single Midstream segment. The Company's unallocated expenses include other income/expense, gain on asset sales related to non-core assets, gain/loss on debt extinguishment 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, 2020:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGL and Oil Revenue | $ | 123,480 |  |  | $ | 29,147 |  |  | $ | 22,929 |  |  | $ | 220 |  |  | $ | 175,776 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 175,776 |  | (A)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 20,424 |  |  | 20,424 |  |  | — |  |  | — |  |  | — |  |  | 20,424 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 66,149 |  |  | — |  |  | (53,958) |  |  | 12,191 |  |
Gain (Loss) on Commodity Derivative Instruments | 79,006 |  |  | 21,257 |  |  | 13,005 |  |  | (176,571) |  |  | (63,303) |  |  | — |  |  | — |  |  | — |  |  | (63,303) |  | (B)
Other Operating Income | — |  |  | — |  |  | — |  |  | 4,248 |  |  | 4,248 |  |  | — |  |  | — |  |  | (495) |  |  | 3,753 |  | (C)
Total Revenue and Other Operating Income | $ | 202,486 |  |  | $ | 50,404 |  |  | $ | 35,934 |  |  | $ | (151,679) |  |  | $ | 137,145 |  |  | $ | 66,149 |  |  | $ | — |  |  | $ | (54,453) |  |  | $ | 148,841 |  |
Total Operating Expense | $ | 144,857 |  |  | $ | 42,876 |  |  | $ | 29,420 |  |  | $ | 74,617 |  |  | $ | 291,770 |  |  | $ | 25,195 |  |  | $ | — |  |  | $ | (54,453) |  |  | $ | 262,512 |  | (D)
Earnings (Loss) Before Income Tax | $ | 57,629 |  |  | $ | 7,528 |  |  | $ | 6,514 |  |  | $ | (263,934) |  |  | $ | (192,263) |  |  | $ | 30,296 |  |  | $ | 2,835 |  |  | $ | — |  |  | $ | (159,132) |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,584,989 |  |  | $ | 1,754,639 |  |  | $ | 134,047 |  |  | $ | (153,991) |  |  | $ | 8,319,684 |  | (E)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 102,901 |  |  | $ | 10,644 |  |  | $ | — |  |  | $ | — |  |  | $ | 113,545 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 120,474 |  |  | $ | 14,378 |  |  | $ | — |  |  | $ | — |  |  | $ | 134,852 |  |
(A) Included in Total Natural Gas, NGL and Oil Revenue are sales of $33,711 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Included in Other Gas is a realized gain on commodity derivative instruments of $29,015 related to the monetization of hedges (see Note 11 - Derivative Instruments for more information). (C) Includes equity in loss of unconsolidated affiliates of $1,259 for Total E&P. (D) Included in Marcellus and Utica are $51,903 and $2,055, respectively, of intercompany gathering fees. (E) Includes investments in unconsolidated equity affiliates of $15,159 for Total E&P. 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, NGL and Oil Revenue | $ | 237,257 |  |  | $ | 65,213 |  |  | $ | 39,638 |  |  | $ | 757 |  |  | $ | 342,865 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 342,865 |  | (F)
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 |  | (G)
Total Revenue and Other Operating Income | $ | 244,088 |  |  | $ | 67,960 |  |  | $ | 40,723 |  |  | $ | 233,481 |  |  | $ | 586,252 |  |  | $ | 78,450 |  |  | $ | — |  |  | $ | (59,670) |  |  | $ | 605,032 |  |
Total Operating Expense | $ | 193,707 |  |  | $ | 50,019 |  |  | $ | 33,120 |  |  | $ | 88,673 |  |  | $ | 365,519 |  |  | $ | 25,955 |  |  | $ | — |  |  | $ | (59,670) |  |  | $ | 331,804 |  | (H)
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 |  | (I)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 120,705 |  |  | $ | 8,294 |  |  | $ | — |  |  | $ | — |  |  | $ | 128,999 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 224,684 |  |  | $ | 104,543 |  |  | $ | — |  |  | $ | — |  |  | $ | 329,227 |  |
(F) Included in Total Natural Gas, NGL and Oil Revenue are sales of $48,476 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (G) Includes equity in earnings of unconsolidated affiliates of $527 for Total E&P. (H) Included in Marcellus and Utica are $59,014 and $541, respectively, of intercompany gathering fees. (I) Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P. Industry segment results for the six months ended June 30, 2020:
| Marcellus Shale |  | Utica Shale |  | Coalbed Methane |  | Other Gas |  | Total E&P |  | Midstream |  | Unallocated |  | Intercompany Eliminations |  | Consolidated |
Natural Gas, NGL and Oil Revenue | $ | 302,524 |  |  | $ | 70,597 |  |  | $ | 53,652 |  |  | $ | 497 |  |  | $ | 427,270 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 427,270 |  | (A)
Purchased Gas Revenue | — |  |  | — |  |  | — |  |  | 46,783 |  |  | 46,783 |  |  | — |  |  | — |  |  | — |  |  | 46,783 |  |
Midstream Revenue | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 146,490 |  |  | — |  |  | (115,893) |  |  | 30,597 |  |
Gain (Loss) on Commodity Derivative Instruments | 147,458 |  |  | 39,257 |  |  | 22,692 |  |  | (157,568) |  |  | 51,839 |  |  | — |  |  | — |  |  | — |  |  | 51,839 |  | (B)
Other Operating Income | — |  |  | — |  |  | — |  |  | 9,714 |  |  | 9,714 |  |  | — |  |  | — |  |  | (1,003) |  |  | 8,711 |  | (C)
Total Revenue and Other Operating Income | $ | 449,982 |  |  | $ | 109,854 |  |  | $ | 76,344 |  |  | $ | (100,574) |  |  | $ | 535,606 |  |  | $ | 146,490 |  |  | $ | — |  |  | $ | (116,896) |  |  | $ | 565,200 |  |
Total Operating Expense | $ | 328,029 |  |  | $ | 91,693 |  |  | $ | 63,674 |  |  | $ | 213,202 |  |  | $ | 696,598 |  |  | $ | 526,109 |  |  | $ | — |  |  | $ | (116,896) |  |  | $ | 1,105,811 |  | (D)
Earnings (Loss) Before Income Tax | $ | 121,953 |  |  | $ | 18,161 |  |  | $ | 12,670 |  |  | $ | (391,600) |  |  | $ | (238,816) |  |  | $ | (399,248) |  |  | $ | 21,127 |  |  | $ | — |  |  | $ | (616,937) |  |
Segment Assets |  |  |  |  |  |  |  |  | $ | 6,584,989 |  |  | $ | 1,754,639 |  |  | $ | 134,047 |  |  | $ | (153,991) |  |  | $ | 8,319,684 |  | (E)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 222,053 |  |  | $ | 20,656 |  |  | $ | — |  |  | $ | — |  |  | $ | 242,709 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 239,867 |  |  | $ | 47,034 |  |  | $ | — |  |  | $ | — |  |  | $ | 286,901 |  |
(A) Included in Total Natural Gas, NGL and Oil Revenue are sales of $79,367 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Included in Other Gas is a realized gain on commodity derivative instruments of $83,997 related to the monetization of hedges (see Note 11 - Derivative Instruments for more information). (C) Includes equity in loss of unconsolidated affiliates of $1,421 for Total E&P. (D) Included in Marcellus and Utica are $111,079 and $4,814 , respectively, of intercompany gathering fees. Included in Midstream is a goodwill impairment charge of $473,045 (See Note 6 - Goodwill and Other Intangible Assets for more information). (E) Includes investments in unconsolidated equity affiliates of 15,159 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, NGL and Oil Revenue | $ | 530,514 |  |  | $ | 158,164 |  |  | $ | 89,473 |  |  | $ | 660 |  |  | $ | 778,811 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 778,811 |  | (F)
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 |  | (G)
Total Revenue and Other Operating Income | $ | 509,887 |  |  | $ | 151,310 |  |  | $ | 86,256 |  |  | $ | 98,848 |  |  | $ | 846,301 |  |  | $ | 151,019 |  |  | $ | — |  |  | $ | (113,857) |  |  | $ | 883,463 |  |
Total Operating Expense | $ | 372,575 |  |  | $ | 101,365 |  |  | $ | 65,754 |  |  | $ | 163,877 |  |  | $ | 703,571 |  |  | $ | 50,919 |  |  | $ | — |  |  | $ | (113,857) |  |  | $ | 640,633 |  | (H)
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 |  | (I)
Depreciation, Depletion and Amortization |  |  |  |  |  |  |  |  | $ | 237,780 |  |  | $ | 16,379 |  |  | $ | — |  |  | $ | — |  |  | $ | 254,159 |  |
Capital Expenditures |  |  |  |  |  |  |  |  | $ | 448,475 |  |  | $ | 179,890 |  |  | $ | — |  |  | $ | — |  |  | $ | 628,365 |  |
(F) Included in Total Natural Gas, NGL 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 comprises over 10% of revenue from contracts with external customers for the period. (G) Includes equity in earnings of unconsolidated affiliates of $1,030 for Total E&P. (H) Included in Marcellus and Utica are $112,476 and $1,205 , respectively, of intercompany gathering fees. (I) Includes investments in unconsolidated equity affiliates of $17,637 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, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Total Segment Revenue from Contracts with External Customers | $ | 208,391 |  |  | $ | 380,528 |  |  | $ | 504,650 |  |  | $ | 851,138 |
(Loss) Gain on Commodity Derivative Instruments | (63,303) |  |  | 221,581 |  |  | 51,839 |  |  | 26,205 |
Other Operating Income | 3,753 |  |  | 2,923 |  |  | 8,711 |  |  | 6,120 |
Total Consolidated Revenue and Other Operating Income | $ | 148,841 |  |  | $ | 605,032 |  |  | $ | 565,200 |  |  | $ | 883,463 |
Loss Before Income Tax:
| For the Three Months Ended June 30, |  |  |  | For the Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment (Loss) Earnings Before Income Taxes for Reportable Business Segments: |  |  |  |  |  |  |
E&P | $ | (192,263) |  |  | $ | 188,260 |  |  | $ | (238,816) |  |  | $ | 81,830 |
Midstream | 30,296 |  |  | 44,414 |  |  | (399,248) |  |  | 76,998 |
Total Segment (Loss) Earnings Before Income Taxes for Reportable Business Segments | $ | (161,967) |  |  | $ | 232,674 |  |  | $ | (638,064) |  |  | $ | 158,828 |
Unallocated Expenses: |  |  |  |  |  |  |
Other (Expense) Income | (4,547) |  |  | 501 |  |  | (9,561) |  |  | 1,531 |
Gain on Certain Asset Sales | 7,726 |  |  | 387 |  |  | 19,769 |  |  | 4,530 |
(Loss) Gain on Debt Extinguishment | (344) |  |  | (77) |  |  | 10,919 |  |  | (7,614) |
(Loss) Earnings Before Income Tax | $ | (159,132) |  |  | $ | 233,485 |  |  | $ | (616,937) |  |  | $ | 157,275 |
Total Assets:
| June 30, |  |
| 2020 |  | 2019
Segment Assets for Total Reportable Business Segments: |  |  |
E&P | $ | 6,584,989 |  |  | $ | 6,887,043 |
Midstream | 1,754,639 |  |  | 2,116,492 |
Intercompany Eliminations | (153,991) |  |  | (3,041) |
Items Excluded from Segment Assets: |  |  |
Cash and Cash Equivalents | 19,607 |  |  | 32,611 |
Recoverable Income Taxes | 114,440 |  |  | 113,592 |
Total Consolidated Assets | $ | 8,319,684 |  |  | $ | 9,146,697 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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