Earnings Per Share

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

EARNINGS PER SHARE:

Basic earnings per share is computed by dividing net income attributable to CNX shareholders by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include, if dilutive, additional shares from stock options, performance stock options, restricted stock units, performance share units and shares issuable upon conversion of CNX's outstanding Convertible Notes (See Note 9 - Long-Term Debt). The number of additional shares is calculated by assuming that outstanding stock options and performance share options were exercised, that outstanding restricted stock units and performance share units were released, that the shares that are issuable from the Convertible Notes are converted (subject to the considerations discussed further in the paragraph below), and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period.

Pursuant to the Merger (See Note 13 - Acquisitions and Dispositions for more information), all outstanding phantom units previously granted under the CNXM long-term incentive plan were converted into the right to receive 0.88 shares of common stock of CNX. As such, all outstanding phantom units were converted, effective as of the closing of the Merger, into CNX restricted stock units. Each CNX restricted stock unit is subject to the same vesting, forfeiture and other terms and conditions applicable to the converted CNXM phantom units. Under Accounting Standards Codification Topic 718, Compensation - Stock Compensation, it was determined that there was no additional compensation cost to record as the conversion of awards did not result in incremental fair value. CNXM's dilutive units did not have a material impact on the Company's earnings per share calculations for the three months ended March 31, 2020.

The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be antidilutive:


	For the Three Months Ended March 31,
		2021	2020
Anti-Dilutive Options		943,838	4,274,552
Anti-Dilutive Restricted Stock Units		66,705	2,007,960
Anti-Dilutive Performance Share Units		—	457,746
Anti-Dilutive Performance Stock Options		—	927,268
		1,010,543	7,667,526

The Company expects to settle the principal amount of the Convertible Notes in cash. As a result, only the amount by which the conversion value exceeds the aggregated principal amount of the Convertible Notes is included in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted earnings per share when the average market price of the Company's common stock for a given period exceeds the initial conversion price of $12.84 per share for the Convertible Notes. As of March 31, 2021, the if-converted value of the Convertible Notes did exceed the outstanding principal amount. In connection with the Convertible Notes' issuance, the Company entered into privately negotiated capped call transactions with certain counterparties, (the "Capped Calls" and "Capped Call Transactions"), which were not included in calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

The table below sets forth the share-based awards that have been exercised or released:


	For the Three Months Ended March 31,
		2021	2020
Options		656,368	—
Restricted Stock Units		701,757	340,883
Performance Share Units		291,653	274,716
		1,649,778	615,599

The computations for basic and diluted earnings (loss) per share are as follows:


	For the Three Months Ended March 31,
		2021		2020
Net Income (Loss)		$	98,025	$	(305,222)
Less: Net Income Attributable to Noncontrolling Interest		—		23,864


Net Income (Loss) Attributable to CNX Resources Shareholders		$	98,025	$	(329,086)

Weighted-Average Shares of Common Stock Outstanding		219,923,634		186,918,361
Effect of Diluted Shares*		8,746,814		—
Weighted-Average Diluted Shares of Common Stock Outstanding		228,670,448		186,918,361

Earnings (Loss) per Share:


Basic		$	0.45	$	(1.76)



Diluted		$	0.43	$	(1.76)

*During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is antidilutive.