Property, Plant and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT:


	March 31, 2021		December 31, 2020
Intangible Drilling Cost	$	5,056,060	$	4,965,252
Gas Gathering Equipment	2,519,293		2,510,917
Proved Gas Properties	1,270,178		1,253,094
Gas Wells and Related Equipment	1,138,212		1,120,061
Unproved Gas Properties	711,881		725,705
Surface Land and Other Equipment	199,147		199,322
Other	189,587		189,645
Total Property, Plant and Equipment	11,084,358		10,963,996
Less: Accumulated Depreciation, Depletion and Amortization	4,064,594		3,938,451

Total Property, Plant and Equipment - Net	$	7,019,764	$	7,025,545

Impairment of Proved Property

CNX performs a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable, over proved properties using forward commodity prices, timing, methods and other assumptions consistent with historical periods. When indicators of impairment are present, tests require that the Company first compare expected future undiscounted cash flows by asset group to their respective carrying values. If the carrying amount exceeds the estimated undiscounted future cash flows, a reduction of the carrying amount of the natural gas properties to their estimated fair values is required, which is generally determined based on an estimation of discounted cash flows using significant assumptions including projected revenues, future commodity prices, and a market-specific weighted average cost of capital which are affected by expectations about future market and economic conditions.

During the three months ended March 31, 2020, CNX recognized certain indicators of impairment specific to our Southwest Pennsylvania Coalbed Methane asset group and determined that the carrying value of that asset group was not recoverable. The fair value of the asset group was estimated by using level 3 inputs which consisted of discounting the estimated future cash flows using discount rates and other assumptions that market participants would use in their estimates of fair value. As a result, an impairment of $61,849 was recognized and is included in Impairment of Exploration and Production Properties in the Consolidated Statements of Income. The impairment was related to an economic decision to temporarily idle certain wells and the related processing facility during the first quarter of 2020.