Earnings Per Share

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

EARNINGS PER SHARE:

Basic earnings per share is computed by dividing net income or net loss 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, 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 were exercised, that outstanding restricted stock units and performance share units were released, that the shares that are issuable from the conversion of the Convertible Notes are issued (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. In periods when CNX recognizes a net loss, the impact of outstanding stock awards and the potential share settlement impact related to CNX's Convertible Notes are excluded from the diluted loss per share calculation as their inclusion would have an anti-dilutive effect.

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 anti-dilutive:


	For the Three Months Ended March 31,
		2022	2021
Anti-Dilutive Options		2,347,218	943,838
Anti-Dilutive Restricted Stock Units		2,493,698	66,705
Anti-Dilutive Performance Share Units		2,071,418	—

		6,912,334	1,010,543

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. 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,
		2022	2021
Options		83,424	656,368
Restricted Stock Units		915,921	701,757
Performance Share Units		72,353	291,653
		1,071,698	1,649,778

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


	For the Three Months Ended March 31,
		2022		2021
Net (Loss) Income		$	(922,941)	$	98,025





Weighted-Average Shares of Common Stock Outstanding		199,854,257		219,923,634
Effect of Diluted Shares*		—		8,746,814
Weighted-Average Diluted Shares of Common Stock Outstanding		199,854,257		228,670,448

(Loss) Earnings per Share:


Basic		$	(4.62)	$	0.45



Diluted		$	(4.62)	$	0.43

*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.