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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASES:
CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class.
On December 20, 2021, CNX entered into a new lease for additional corporate headquarters space that is expected to result in an ROU asset and lease obligation of approximately $10,052 when the lease commences in May 2022.
The components of lease cost were as follows:
For the Years Ended December 31,
202120202019
Operating Lease Cost$60,364 $74,703 $73,809 
Finance Lease Cost:
Amortization of Right-of-Use Assets
1,577 4,959 5,242 
Interest on Lease Liabilities
123 739 1,241 
Short-term Lease Cost8,589 3,252 5,547 
Variable Lease Cost*7,100 9,634 17,337 
Total Lease Cost$77,753 $93,287 $103,176 
*Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost.
Amounts recognized in the Consolidated Balance Sheets are as follows:
December 31,
20212020
Operating Leases:
Operating Lease Right-of-Use Asset$56,022 $108,683 
Current Portion of Operating Lease Obligations$22,940 $52,575 
Operating Lease Obligations33,672 53,235 
Total Operating Lease Liabilities
$56,612 $105,810 
Finance Leases:
Property, Plant and Equipment$5,613 $72,653 
Less—Accumulated Depreciation, Depletion and Amortization3,840 67,508 
Property, Plant and Equipment—Net
$1,773 $5,145 
Current Portion of Finance Lease Obligations$555 $6,876 
Finance Lease Obligations1,218 1,057 
Total Finance Lease Liabilities
$1,773 $7,933 

Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
202120202019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases$56,966 $62,610 $66,827 
Operating Cash Flows for Finance Leases$123 $739 $1,241 
Financing Cash Flows for Finance Leases$2,785 $7,155 $7,149 
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases
$4,010 $4,027 $15,347 
Finance Leases
$772 $257 $1,846 
Maturities of lease liabilities are as follows:
OperatingFinance
LeasesLeases
Year Ended December 31,
2022$25,008 $585 
20235,453 611 
20245,433 324 
20254,824 209 
20264,722 148 
Thereafter21,275 2 
Total Lease Payments66,715 1,879 
Less: Interest10,103 106 
Present Value of Lease Liabilities$56,612 $1,773 

Lease terms and discount rates are as follows:
For the Years Ended December 31,
202120202019
Weighted Average Remaining Lease Term (years):
Operating Leases
6.204.684.39
Finance Leases
3.561.372.16
Weighted Average Discount Rate:
Operating Leases
4.84 %4.40 %4.96 %
Finance Leases
1.72 %6.33 %6.92 %
Leases LEASES:
CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class.
On December 20, 2021, CNX entered into a new lease for additional corporate headquarters space that is expected to result in an ROU asset and lease obligation of approximately $10,052 when the lease commences in May 2022.
The components of lease cost were as follows:
For the Years Ended December 31,
202120202019
Operating Lease Cost$60,364 $74,703 $73,809 
Finance Lease Cost:
Amortization of Right-of-Use Assets
1,577 4,959 5,242 
Interest on Lease Liabilities
123 739 1,241 
Short-term Lease Cost8,589 3,252 5,547 
Variable Lease Cost*7,100 9,634 17,337 
Total Lease Cost$77,753 $93,287 $103,176 
*Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost.
Amounts recognized in the Consolidated Balance Sheets are as follows:
December 31,
20212020
Operating Leases:
Operating Lease Right-of-Use Asset$56,022 $108,683 
Current Portion of Operating Lease Obligations$22,940 $52,575 
Operating Lease Obligations33,672 53,235 
Total Operating Lease Liabilities
$56,612 $105,810 
Finance Leases:
Property, Plant and Equipment$5,613 $72,653 
Less—Accumulated Depreciation, Depletion and Amortization3,840 67,508 
Property, Plant and Equipment—Net
$1,773 $5,145 
Current Portion of Finance Lease Obligations$555 $6,876 
Finance Lease Obligations1,218 1,057 
Total Finance Lease Liabilities
$1,773 $7,933 

Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
202120202019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases$56,966 $62,610 $66,827 
Operating Cash Flows for Finance Leases$123 $739 $1,241 
Financing Cash Flows for Finance Leases$2,785 $7,155 $7,149 
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases
$4,010 $4,027 $15,347 
Finance Leases
$772 $257 $1,846 
Maturities of lease liabilities are as follows:
OperatingFinance
LeasesLeases
Year Ended December 31,
2022$25,008 $585 
20235,453 611 
20245,433 324 
20254,824 209 
20264,722 148 
Thereafter21,275 2 
Total Lease Payments66,715 1,879 
Less: Interest10,103 106 
Present Value of Lease Liabilities$56,612 $1,773 

Lease terms and discount rates are as follows:
For the Years Ended December 31,
202120202019
Weighted Average Remaining Lease Term (years):
Operating Leases
6.204.684.39
Finance Leases
3.561.372.16
Weighted Average Discount Rate:
Operating Leases
4.84 %4.40 %4.96 %
Finance Leases
1.72 %6.33 %6.92 %