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Variable Interest Entities | 6 Months Ended
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Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities | VARIABLE INTEREST ENTITIES: The Company determined CNXM to be a variable interest entity. The Company has the power through its 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 consolidates CNXM. 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. On July 26, 2020, CNX entered into an Agreement and Plan of Merger (the “Merger Agreement”). See Note 17 - Subsequent Event for more information. On January 29, 2020, CNX and CNXM executed definitive agreements to eliminate CNXM's incentive distribution rights, or IDRs, held by its general partner and to convert the 2.0% general partner interest in CNXM into a non-economic general partnership interest (collectively, the "IDR Elimination Transaction"). CNX received the following consideration under the IDR Elimination Transaction in exchange for the cancellation of the IDRs and conversion of the 2.0% general partner interest: •26 million CNXM common units; •3 million new CNXM Class B units, which will not receive or accrue distributions until January 1, 2022 at which time they will automatically convert into CNXM common units on a one-for-one basis; and •$135,000 to be paid in three installments as follows: $50,000 due December 31, 2020, $50,000 due December 31, 2021 and $35,000 due December 31, 2022. As a result of the IDR Elimination Transaction, CNX owns 47.7 million CNXM common units, or approximately 53%, of the outstanding limited partner interests in CNXM, excluding the CNXM Class B units. Prior to the IDR Elimination Transaction, the Company owned approximately 34% of the outstanding limited partner interest and 100% of the general partner interest. Upon conversion of the CNXM Class B units to CNXM common units on January 1, 2022, CNX's ownership will increase to 50.7 million CNXM common units, or approximately 54.6% of the outstanding limited partner interest in CNXM on a proforma basis. The following table presents amounts included in the Company's Consolidated Balance Sheets that were for the use or obligation of CNXM:
| June 30, |  | December 31,
| 2020 |  | 2019
Assets: |  |  |
Cash | $ | 989 |  |  | $ | 31 |
Receivables - Related Party | 16,583 |  |  | 21,076 |
Receivables - Third Party | 8,615 |  |  | 7,935 |
Other Current Assets | 1,672 |  |  | 1,976 |
Property, Plant and Equipment, net | 1,206,739 |  |  | 1,195,591 |
Operating Lease ROU Asset | 1,594 |  |  | 4,731 |
Other Assets | 2,698 |  |  | 3,262 |
Total Assets | $ | 1,238,890 |  |  | $ | 1,234,602 |
Liabilities: |  |  |
Accounts Payable and Accrued Liabilities | $ | 31,931 |  |  | $ | 67,290 |
Accounts Payable - Related Party | 52,191 |  |  | 4,787 |
Revolving Credit Facility | 319,000 |  |  | 311,750 |
Long-Term Debt | 394,635 |  |  | 394,162 |
Long-Term Liabilities - Related Party | 85,000 |  |  | — |
Total Liabilities | $ | 882,757 |  |  | $ | 777,989 |
The following table summarizes CNXM's Consolidated Statements of Operations and Cash Flows, inclusive of affiliate amounts:
| For the Three Months Ended June 30, |  |  |  | For the Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Revenue |  |  |  |  |  |  |
Gathering Revenue - Related Party | $ | 54,203 |  |  | $ | 59,205 |  |  | $ | 116,381 |  |  | $ | 112,981 |
Gathering Revenue - Third Party | 11,749 |  |  | 18,896 |  |  | 29,702 |  |  | 37,339 |
Miscellaneous Income | 86 |  |  | — |  |  | 151 |  |  | — |
Total Revenue | 66,038 |  |  | 78,101 |  |  | 146,234 |  |  | 150,320 |
Expenses |  |  |  |  |  |  |
Operating Expense - Related Party | 4,367 |  |  | 6,514 |  |  | 8,195 |  |  | 12,062 |
Operating Expense - Third Party | 6,049 |  |  | 6,188 |  |  | 14,645 |  |  | 12,162 |
General and Administrative Expense - Related Party | 2,748 |  |  | 4,027 |  |  | 5,605 |  |  | 7,994 |
General and Administrative Expense - Third Party | 1,585 |  |  | 1,364 |  |  | 4,350 |  |  | 2,900 |
Loss on Asset Sales and Abandonments | 1,663 |  |  | — |  |  | 1,652 |  |  | 7,229 |
Depreciation Expense | 8,209 |  |  | 5,860 |  |  | 15,787 |  |  | 11,510 |
Interest Expense | 8,617 |  |  | 7,685 |  |  | 17,410 |  |  | 15,024 |
Total Expense | 33,238 |  |  | 31,638 |  |  | 67,644 |  |  | 68,881 |
Net Income | $ | 32,800 |  |  | $ | 46,463 |  |  | $ | 78,590 |  |  | $ | 81,439 |
Net Cash Provided by Operating Activities | $ | 45,495 |  |  | $ | 74,753 |  |  | $ | 85,618 |  |  | $ | 124,666 |
Net Cash Used in Investing Activities | $ | (14,297) |  |  | $ | (104,310) |  |  | $ | (46,956) |  |  | $ | (182,867) |
Net Cash (Used in) Provided by Financing Activities | $ | (35,444) |  |  | $ | 41,164 |  |  | $ | (37,704) |  |  | $ | 65,912 |
At June 30, 2020 and December 31, 2019, excluding amounts related to the IDR Elimination Transaction, CNX had a net payable of $14,453 and $16,362 respectively, due to CNX Gathering and CNXM, primarily for accrued but unpaid gathering services.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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