XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Derivative Instruments | 3 Months Ended
--- | ---
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTS: CNX enters into interest rate swap agreements to manage its exposure to interest rate volatility. These swaps change the variable-rate cash flow exposure on the debt obligations to fixed cash flows. The change in fair value of the interest rate swap agreements is accounted for on a mark-to-market basis with the changes in fair value recorded in current period earnings. In March 2020, CNX entered into an interest rate swap agreement, inclusive of a put option at zero basis points, related to $160,000 of borrowings under the CNX Credit Facility which has the economic effect of modifying the variable-interest obligation into a fixed-interest obligation over a four-year period. In March 2020, CNX entered into a four-year interest rate swap related to an additional $250,000 of borrowings under the CNX Credit Facility, inclusive of a put option at zero basis points, effective April 3, 2020. In December 2020, CNX executed an offsetting $250,000 interest rate swap, effective immediately, which expires in April 2024. Consistent with the previous interest rate swap agreements, the $250,000 interest rate swaps were entered into to manage CNX's exposure to interest rate volatility. CNX enters into financial derivative instruments (over-the-counter swaps) to manage its exposure to natural gas and NGL price fluctuations. Commodity hedges are accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings. CNX is exposed to credit risk in the event of non-performance by counterparties. The creditworthiness of counterparties is subject to continuing review. The Company has not experienced any issues of non-performance by derivative counterparties. None of the Company's counterparty master agreements currently require CNX to post collateral for any of its positions. However, as stated in the applicable counterparty master agreements, if CNX's obligations with one of its counterparties cease to be secured on the same basis as similar obligations with the other lenders under the credit facility, CNX would have to post collateral for instruments in a liability position in excess of defined thresholds. All of the Company's derivative instruments are subject to master netting arrangements with our counterparties. CNX recognizes all financial derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets on a gross basis. Each of the Company's counterparty master agreements allows, in the event of default, the ability to elect early termination of outstanding contracts. If early termination is elected, CNX and the applicable counterparty would net settle all open hedge positions. The total notional amounts of CNX's derivative instruments were as follows:
| March 31, |  | December 31, |  | Forecasted to
| 2024 |  | 2023 |  | Settle Through
Natural Gas Commodity Swaps (Bcf) | 1,245.6 |  |  | 1,349.2 |  |  | 2027
Natural Gas Basis Swaps (Bcf) | 710.6 |  |  | 760.3 |  |  | 2027
NGL Commodity Swaps (Mbbls) | 1,131.5 |  | 81.0 |  | 2025
Interest Rate Swaps | $ | 410,000 |  |  | $ | 410,000 |  |  | 2024
The gross fair value of CNX's derivative instruments was as follows:
| March 31, |  | December 31,
| 2024 |  | 2023
Current Assets: |  |  |
Commodity Derivative Instruments: |  |  |
Natural Gas Commodity Swaps | $ | 252,205 |  |  | $ | 168,532 |
NGL Commodity Swaps | 192 |  |  | 1,003 |
Natural Gas Basis Swaps | 36,800 |  |  | 77,540 |
Interest Rate Swaps | 974 |  |  | 5,449 |
Total Current Assets | $ | 290,171 |  |  | $ | 252,524 |
Other Non-Current Assets: |  |  |
Commodity Derivative Instruments: |  |  |
Natural Gas Commodity Swaps | $ | 145,589 |  |  | $ | 166,701 |
Natural Gas Basis Swaps | 78,352 |  |  | 113,829 |
Interest Rate Swaps | — |  |  | — |
Total Other Non-Current Assets | $ | 223,941 |  |  | $ | 280,530 |
Current Liabilities: |  |  |
Commodity Derivative Instruments: |  |  |
Natural Gas Commodity Swaps | $ | 84,663 |  |  | $ | 47,279 |
NGL Commodity Swaps | 1,075 |  |  | — |
Natural Gas Basis Swaps | 30,577 |  |  | 9,473 |
Interest Rate Swaps | 1,085 |  |  | 4,350 |
Total Current Liabilities | $ | 117,400 |  |  | $ | 61,102 |
Non-Current Liabilities: |  |  |
Commodity Derivative Instruments: |  |  |
Natural Gas Commodity Swaps | $ | 429,198 |  |  | $ | 484,357 |
Natural Gas Basis Swaps | 46,391 |  |  | 42,197 |
Interest Rate Swaps | — |  |  | — |
Total Non-Current Liabilities | $ | 475,589 |  |  | $ | 526,554 |
The effect of commodity derivative instruments on the Company's Consolidated Statements of Income was as follows:
|  |  |  | For the Three Months Ended |
|  |  |  | March 31, |
|  |  |  |  |  | 2024 |  | 2023 |
Realized Gain (Loss) on Commodity Derivative Instruments: |  |  |  |  |  |  |  |  |
Natural Gas Commodity Swaps |  |  |  |  |  | $ | 60,309 |  |  | $ | (49,926) |  |
Natural Gas Basis Swaps |  |  |  |  |  | (5,720) |  |  | (11,106) |  |
NGL Commodity Swaps |  |  |  |  |  | 64 |  |  | — |  |
Total Realized Gain (Loss) on Commodity Derivative Instruments |  |  |  |  |  | 54,653 |  | * | (61,032) |  | **
Unrealized Gain (Loss) on Commodity Derivative Instruments: |  |  |  |  |  |  |  |  |
Natural Gas Commodity Swaps |  |  |  |  |  | 50,513 |  |  | 980,836 |  |
Natural Gas Basis Swaps |  |  |  |  |  | (95,921) |  |  | (158,235) |  |
NGL Commodity Swaps |  |  |  |  |  | (1,717) |  |  | 598 |  |
Total Unrealized (Loss) Gain on Commodity Derivative Instruments |  |  |  |  |  | (47,125) |  |  | 823,199 |  |
Gain on Commodity Derivative Instruments: |  |  |  |  |  |  |  |  |
Natural Gas Commodity Swaps |  |  |  |  |  | 110,822 |  |  | 930,910 |  |
Natural Gas Basis Swaps |  |  |  |  |  | (101,641) |  |  | (169,341) |  |
NGL Commodity Swaps |  |  |  |  |  | (1,653) |  |  | 598 |  |
Total Gain on Commodity Derivative Instruments |  |  |  |  |  | $ | 7,528 |  |  | $ | 762,167 |  |
*Includes $30,170 of commodity derivatives that have been settled but not received and $270 that have been settled but not paid at March 31, 2024, and excludes $6,741 of commodity derivatives that were settled but not received and $900 that were settled but not paid at December 31, 2023. **Includes $1,311 of commodity derivatives that have been settled but not received at March 31, 2023 and excludes $77,662 of commodity derivatives that were settled but not paid at December 31, 2022. The effect of interest rate swaps on Interest Expense in the Company's Consolidated Statements of Income was as follows:
|  |  |  | For the Three Months Ended
|  |  |  | March 31,
|  |  |  |  |  | 2024 |  | 2023
Cash Received in Settlement of Interest Rate Swaps |  |  |  |  |  | $ | 1,215 |  |  | $ | 799 |
Unrealized Loss on Interest Rate Swaps |  |  |  |  |  | (1,211) |  |  | (960) |
Gain (Loss) on Interest Rate Swaps |  |  |  |  |  | $ | 4 |  |  | $ | (161) |
The Company also enters into fixed price natural gas sales agreements that are satisfied by physical delivery. These physical commodity contracts qualify for the normal purchases and normal sales exception and are not subject to derivative instrument accounting.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration