XML 35 R22.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION:
The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.
The Company evaluates the performance of its reportable segments based on total revenue and other operating income, and operating expenses directly attributable to that segment. Certain expenses are managed outside the reportable segments and therefore are not allocated. These expenses include, but are not limited to, interest expense, impairment of exploration and production properties, impairment of goodwill and other corporate expenses such as selling, general and administrative costs.
CNX's principal activity is to produce pipeline quality natural gas for sale primarily to gas wholesalers and the Company has two reportable segments that conducts those operations: Shale and Coalbed Methane. The Other Segment includes nominal 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 expenses that are managed outside the reportable segments as discussed above. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses.
Prior to the Merger of CNXM that occurred in September 2020 (See Note 13 - Acquisitions and Dispositions), CNX consisted of two principal business divisions: Exploration and Production (E&P) and Midstream. The E&P Division included four reportable segments, Marcellus Shale, Utica Shale, Coalbed Methane and Other Gas. Certain reclassifications of 2020 segment information have been made to conform to the new presentation.
Industry segment results for the three months ended March 31, 2021 are: 
ShaleCoalbed MethaneOtherConsolidated
Natural Gas, NGL and Oil Revenue$342,169 $38,904 $152 $381,225 (A)
Purchased Gas Revenue— — 33,484 33,484   
Gain on Commodity Derivative Instruments 2,182 222 31,010 33,414 
Other Revenue and Operating Income19,066 — 5,884 24,950 (B)
Total Revenue and Other Operating Income$363,417 $39,126 $70,530 $473,073   
Total Operating Expense$188,711 $28,555 $82,538 $299,804 
Earnings (Loss) Before Income Tax$174,706 $10,571 $(49,873)$135,404 
Segment Assets$6,074,252 $1,082,232 $912,753 $8,069,237 (C)
Depreciation, Depletion and Amortization$109,506 $15,483 $3,955 $128,944   
Capital Expenditures$121,118 $2,142 $169 $123,429   

(A)    Included in Total Natural Gas, NGL and Oil Revenue are sales of $45,000 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period.
(B)    Includes midstream revenue of $19,066 and equity in earnings of unconsolidated affiliates of $950 for Shale and Other, respectively.
(C)    Includes investments in unconsolidated equity affiliates of $16,172.
Industry segment results for the three months ended March 31, 2020 are: 
ShaleCoalbed MethaneOtherConsolidated
Natural Gas, NGL and Oil Revenue$220,494 $30,723 $277 $251,494 (D)
Purchased Gas Revenue— — 26,359 26,359   
Gain on Commodity Derivative Instruments 86,452 9,687 19,003 115,142 (E)
Other Revenue and Operating Income18,406 — 4,958 23,364 (F)
Total Revenue and Other Operating Income$325,352 $40,410 $50,597 $416,359   
Total Operating Expense$191,948 $34,160 $617,192 $843,300 
Earnings (Loss) Before Income Tax$133,404 $6,250 $(597,458)$(457,804)
Segment Assets$6,059,158 $1,145,942 $1,323,850 $8,528,950 (G)
Depreciation, Depletion and Amortization$107,046 $18,438 $3,680 $129,164   
Capital Expenditures$147,840 $2,452 $1,757 $152,049   

(D)    Included in Total Natural Gas, NGL and Oil Revenue are sales of $45,656 to Direct Energy Business Marketing LLC and $32,176 to NJR Energy Services Company, each of which comprises over 10% of revenue from contracts with external customers for the period.
(E) Included in Other is a realized gain on commodity derivative instruments of $54,982 related to the monetization of hedges (see Note 11 - Derivative Instruments for more information).
(F)    Includes midstream revenue of $18,406 and equity in loss of unconsolidated affiliates of $161 for Shale and Other, respectively.
(G)    Includes investments in unconsolidated equity affiliates of $16,549.
Reconciliation of Segment Information to Consolidated Amounts:

Revenue and Other Operating Income
For the Three Months Ended March 31,
20212020
Total Segment Revenue from Contracts with External Customers$433,775 $296,259 
Gain on Commodity Derivative Instruments33,414 115,142 
Other Operating Income5,884 4,958 
Total Consolidated Revenue and Other Operating Income$473,073 $416,359