XML 41 R22.htm IDEA: XBRL DOCUMENT v3.24.0.1

Leases

12 Months Ended

Dec. 31, 2023

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 May 26, 2023, CNX entered into a new lease for office space that is expected to result in an operating lease ROU asset of approximately $5,270 and an operating lease obligation of approximately $4,370 in April 2024, which is when the lease is expected to commence. On January 2, 2024, CNX entered into a new lease for an electric-powered drilling system that is expected to result in a finance lease asset, to be included within property, plant and equipment, and as a finance lease obligation of $18,823 in March 2024, which is when the lease is expected to commence.

The components of lease cost were as follows:

			For the Years Ended December 31,
			2023						2022						2021
Operating Lease Cost			$	63,087					$	56,725					$	60,364
Finance Lease Cost:
Amortization of Right-of-Use Assets			1,628						665						1,577
Interest on Lease Liabilities			429						78						123
Short-term Lease Cost			2,357						7,784						8,589
Variable Lease Cost*			12,401						9,271						7,100
Total Lease Cost			$	79,902					$	74,523					$	77,753

*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,
			2023						2022
Operating Leases:
Operating Lease Right-of-Use Assets			$	139,466					$	174,849
Current Portion of Operating Lease Obligations			$	53,791					$	47,436
Operating Lease Obligations			89,531						132,105
Total Operating Lease Liabilities			$	143,322					$	179,541
Finance Leases:
Property, Plant and Equipment			$	10,864					$	6,777
Less—Accumulated Depreciation, Depletion and Amortization			3,502						3,926
Property, Plant and Equipment—Net			$	7,362					$	2,851
Current Portion of Finance Lease Obligations			$	1,862					$	881
Finance Lease Obligations			5,500						1,970
Total Finance Lease Liabilities			$	7,362					$	2,851

Supplemental cash flow information related to leases was as follows:

			For the Years Ended December 31,
			2023						2022						2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases			$	64,139					$	55,729					$	56,966
Operating Cash Flows for Finance Leases			$	429					$	78					$	123
Financing Cash Flows for Finance Leases			$	1,627					$	665					$	2,785
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases			$	19,477					$	36,758					$	4,010
Finance Leases			$	6,178					$	1,742					$	772

Maturities of lease liabilities are as follows:

			Operating						Finance
			Leases						Leases
Year Ended December 31,
2024			$	59,430					$	2,401
2025			50,373						2,347
2026			19,372						2,278
2027			6,048						1,963
2028			6,109						598
Thereafter			15,422						30
Total Lease Payments			156,754						9,617
Less: Interest			13,432						2,255
Present Value of Lease Liabilities			$	143,322					$	7,362

Lease terms and discount rates are as follows:

			For the Years Ended December 31,
			2023						2022						2021
Weighted Average Remaining Lease Term (years):
Operating Leases			3.59						4.41						6.20
Finance Leases			4.08						4.01						3.56
Weighted Average Discount Rate:
Operating Leases			4.84		%				4.65		%				4.84		%
Finance Leases			7.35		%				6.17		%				1.72		%

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 May 26, 2023, CNX entered into a new lease for office space that is expected to result in an operating lease ROU asset of approximately $5,270 and an operating lease obligation of approximately $4,370 in April 2024, which is when the lease is expected to commence. On January 2, 2024, CNX entered into a new lease for an electric-powered drilling system that is expected to result in a finance lease asset, to be included within property, plant and equipment, and as a finance lease obligation of $18,823 in March 2024, which is when the lease is expected to commence.

The components of lease cost were as follows:

			For the Years Ended December 31,
			2023						2022						2021
Operating Lease Cost			$	63,087					$	56,725					$	60,364
Finance Lease Cost:
Amortization of Right-of-Use Assets			1,628						665						1,577
Interest on Lease Liabilities			429						78						123
Short-term Lease Cost			2,357						7,784						8,589
Variable Lease Cost*			12,401						9,271						7,100
Total Lease Cost			$	79,902					$	74,523					$	77,753

*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,
			2023						2022
Operating Leases:
Operating Lease Right-of-Use Assets			$	139,466					$	174,849
Current Portion of Operating Lease Obligations			$	53,791					$	47,436
Operating Lease Obligations			89,531						132,105
Total Operating Lease Liabilities			$	143,322					$	179,541
Finance Leases:
Property, Plant and Equipment			$	10,864					$	6,777
Less—Accumulated Depreciation, Depletion and Amortization			3,502						3,926
Property, Plant and Equipment—Net			$	7,362					$	2,851
Current Portion of Finance Lease Obligations			$	1,862					$	881
Finance Lease Obligations			5,500						1,970
Total Finance Lease Liabilities			$	7,362					$	2,851

Supplemental cash flow information related to leases was as follows:

			For the Years Ended December 31,
			2023						2022						2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases			$	64,139					$	55,729					$	56,966
Operating Cash Flows for Finance Leases			$	429					$	78					$	123
Financing Cash Flows for Finance Leases			$	1,627					$	665					$	2,785
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases			$	19,477					$	36,758					$	4,010
Finance Leases			$	6,178					$	1,742					$	772

Maturities of lease liabilities are as follows:

			Operating						Finance
			Leases						Leases
Year Ended December 31,
2024			$	59,430					$	2,401
2025			50,373						2,347
2026			19,372						2,278
2027			6,048						1,963
2028			6,109						598
Thereafter			15,422						30
Total Lease Payments			156,754						9,617
Less: Interest			13,432						2,255
Present Value of Lease Liabilities			$	143,322					$	7,362

Lease terms and discount rates are as follows:

			For the Years Ended December 31,
			2023						2022						2021
Weighted Average Remaining Lease Term (years):
Operating Leases			3.59						4.41						6.20
Finance Leases			4.08						4.01						3.56
Weighted Average Discount Rate:
Operating Leases			4.84		%				4.65		%				4.84		%
Finance Leases			7.35		%				6.17		%				1.72		%

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration