Oil and Gas Exploration and Production Industries Disclosures [Text Block] | Supplemental Gas Data (unaudited): The following information was prepared in accordance with the FASB's Accounting Standards Update No. 2010-03, “Extractive Activities-Oil and Gas (Topic 932).” Capitalized Costs: As of December 31, 2017 2016 Intangible drilling costs 3,849,689 3,583,599 Proved gas properties 1,999,891 2,016,916 Gas gathering assets 1,182,234 1,138,299 Unproved gas properties 919,733 1,116,282 Gas wells and related equipment 834,120 800,617 Gas well plugging 181,038 176,961 Total Property, Plant and Equipment $ 8,966,705 $ 8,832,674 Accumulated Depreciation, Depletion and Amortization (3,408,606 ) (3,099,751 ) Net Capitalized Costs $ 5,558,099 $ 5,732,923 Costs incurred for property acquisition, exploration and development (*): For the Years Ended December 31, 2017 2016 2015 Property acquisitions Proved properties $ 15,850 $ — $ — Unproved properties 32,038 1,537 76,676 Development 544,809 138,813 666,315 Exploration 48,020 32,259 95,371 Total $ 640,717 $ 172,609 $ 838,362 __________ (*) Includes costs incurred whether capitalized or expensed. Results of Operations for Producing Activities: For the Years Ended December 31, 2017 2016 2015 Natural Gas, NGLs and Oil Sales $ 1,125,224 $ 793,248 $ 726,921 Gain (Loss) on Commodity Derivative Instruments 206,930 (141,021 ) 392,942 Purchased Gas Sales 53,795 43,256 14,450 Total Revenue 1,385,949 695,483 1,134,313 Lease Operating Expense 88,932 96,434 121,847 Production, Ad Valorem, and Other Fees 29,267 31,049 30,438 Transportation, Gathering and Compression 382,865 374,350 343,403 Purchased Gas Costs 52,597 42,717 10,721 Impairment of Exploration and Production Properties 137,865 — 828,905 Exploration Costs 48,074 14,522 10,119 DD&A 412,036 419,939 371,783 Total Costs 1,151,636 979,011 1,717,216 Pre-tax Operating Income / (Loss) 234,313 (283,528 ) (582,903 ) Income Tax Benefit (348,676 ) (69,929 ) (251,490 ) Results of Operations for Producing Activities excluding Corporate and Interest Costs $ 582,989 $ (213,599 ) $ (331,413 ) The following is production, average sales price and average production costs, excluding ad valorem and severance taxes, per unit of production: For the Years Ended December 31, 2017 2016 2015 Production (MMcfe) 407,166 394,387 328,657 Total average sales price before effects of financial settlements (per Mcfe) $ 2.76 $ 2.01 $ 2.22 Average effects of financial settlements (per Mcfe) $ (0.10 ) $ 0.62 $ 0.59 Total average sales price including effects of financial settlements (per Mcfe) $ 2.66 $ 2.63 $ 2.81 Average lifting costs, excluding ad valorem and severance taxes (per Mcfe) $ 0.22 $ 0.24 $ 0.37 During the years ended December 31, 2017 , 2016 and 2015 , the Company drilled 90.0 , 36.0 , and 132.8 net development wells, respectively. There were no net dry development wells in 2017 , 2016 , or 2015 . During the year ended December 31, 2017 , the Company drilled 4.0 net exploratory wells. During the years ended December 31, 2016 and 2015 , we drilled 0.0 and 2.5 net exploratory wells, respectively. There were no net dry exploratory wells in 2017 , 2016 , or 2015 . At December 31, 2017 , there were 3.9 net development wells and 1.8 exploratory wells that are drilled but uncompleted. Additionally there are 13.0 net developmental wells that have been completed and are awaiting final tie-in to production. CNX is committed to provide 712.3 Bcf of gas under existing sales contracts or agreements over the course of the next four years. The Company expects to produce sufficient quantities from existing proved developed reserves to satisfy these commitments. Most of the Company's development wells and proved acreage are located in Virginia, West Virginia, Ohio and Pennsylvania. Some leases are beyond their primary term, but these leases are extended in accordance with their terms as long as certain drilling commitments or other term commitments are satisfied. The following table sets forth, at December 31, 2017 , the number of producing wells, developed acreage and undeveloped acreage: Gross Net(1) Producing Gas Wells (including gob wells) 17,013 12,853 Producing Oil Wells 171 12 Acreage Position: Proved Developed Acreage 551,900 543,937 Proved Undeveloped Acreage 41,066 40,703 Unproved Acreage 4,434,714 3,817,015 Total Acreage 5,027,680 4,401,655 ____________ (1) Net acres include acreage attributable to the Company's working interests of the properties. Additional adjustments (either increases or decreases) may be required as the Company further develops title to and further confirms its rights with respect to its various properties in anticipation of development. The Company believes that its assumptions and methodology in this regard are reasonable. Proved Oil and Gas Reserves Quantities: Annually, the preparation of natural gas reserves estimates are completed in accordance with CNX prescribed internal control procedures, which include verification of input data into a gas reserves forecasting and economic evaluation software, as well as multi-functional management review. The input data verification includes reviews of the price and cost assumptions used in the economic model to determine the reserves. Also, the production volumes are reconciled between the system used to calculate the reserves and other accounting/measurement systems. The technical employee responsible for overseeing the preparation of the reserve estimates is a petroleum engineer with over 10 years of experience in the oil and gas industry. The Company's 2017 gas reserves results, which are reported in the Supplemental Gas Data year ended December 31, 2017 Form 10-K, were audited by Netherland, Sewell & Associates, Inc. The technical person primarily responsible for overseeing the audit of the Company's reserves is a registered professional engineer in the state of Texas with over 15 years of experience in the oil and gas industry. The gas reserves estimates are as follows: Condensate Consolidated Natural Gas NGLs & Crude Oil Operations (MMcf) (Mbbls) (Mbbls) (MMcfe) Balance December 31, 2014 (a) 6,317,600 77,790 7,213 6,827,616 Revisions (b) 1,055,225 45,711 6,569 1,368,909 Price Changes (2,866,123 ) (45,675 ) (3,208 ) (3,159,421 ) Extensions and Discoveries (c) 840,800 13,916 1,707 934,542 Production (287,287 ) (5,530 ) (1,365 ) (328,657 ) Balance December 31, 2015 (a) 5,060,215 86,212 10,916 5,642,989 Revisions (d) 11,559 (19,078 ) 510 (99,849 ) Price Changes (179,914 ) (1,647 ) (34 ) (190,009 ) Extensions and Discoveries (e) 643,688 10,960 1,783 720,146 Production (348,753 ) (6,710 ) (896 ) (394,387 ) Purchases of Reserves In-Place (f) 1,352,759 13,177 1,970 1,443,642 Sales of Reserves In-Place (f) (711,155 ) (22,382 ) (4,240 ) (870,884 ) Balance December 31, 2016 (a) 5,828,399 60,532 10,009 6,251,648 Revisions (g) (202,735 ) 1,162 (5,834 ) (232,321 ) Price Changes 173,738 1,188 (159 ) 181,470 Extensions and Discoveries (e) 1,769,029 17,887 1,800 1,887,153 Production (364,893 ) (6,456 ) (589 ) (407,166 ) Sales of Reserves In-Place (81,780 ) (2,622 ) (277 ) (99,172 ) Balance December 31, 2017 (a) 7,121,758 71,691 4,950 7,581,612 Proved developed resources: December 31, 2015 3,310,894 59,196 5,180 3,697,152 December 31, 2016 3,478,464 30,666 3,474 3,683,302 December 31, 2017 4,051,526 56,022 3,567 4,409,065 Proved undeveloped resources: December 31, 2015 1,749,320 27,016 5,736 1,945,837 December 31, 2016 2,349,934 29,866 6,536 2,568,346 December 31, 2017 3,070,232 15,669 1,383 3,172,547 __________ (a) Proved developed and proved undeveloped gas reserves are defined by SEC Rule 4.10(a) of Regulation S-X. Generally, these reserves would be commercially recovered under current economic conditions, operating methods and government regulations. CNX cautions that there are many inherent uncertainties in estimating proved reserve quantities, projecting future production rates and timing of development expenditures. Proved oil and gas reserves are estimated quantities of natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and government regulations. Proved developed reserves are reserves expected to be recovered through existing wells, with existing equipment and operating methods. (b) The upward revisions in 2015 of 1,369 Bcfe were due to 611 Bcfe increase in both performance and operating cost reductions for developed properties, a 1,200 Bcfe increase for undeveloped properties due to operating cost reductions and expected increases in well performance. These upward revisions in 2015 were offset by a 442 Bcfe downward revision for undeveloped properties that were removed from our operational plans due to "high-grading" and selecting our highest rate of return properties for future development. (c) Extensions and Discoveries in 2015 are due mainly to the high grading of locations which resulted in the addition of wells on the Company's Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology. (d) The net downward revision of 99.8 Bcfe was the result of 255 Bcfe downward revision for wells that were removed from both internal and JV partner development plans, 113 Bcfe downward revision related to economics for producing properties offset by 268 Bcfe of improved analog performance. (e) Extensions and Discoveries in 2016 and 2017 are due to the addition of wells on the Company's Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology. (f) Purchases and Sales of Reserves In-Place in 2016 is the result of the Company's fourth quarter realignment of the Marcellus Shale properties as part of dissolving our joint venture with Noble Energy. (g) The downward revisions for 2017 is due to corporate planning changes by our JV partner in Ohio Utica which resulted in all PUD's being removed, causing a 458 Bcfe downward revision, offset, in part by improved well performance due to the enhanced RCS completions and improved operating costs. For the Year Ended December 31, 2017 Proved Undeveloped Reserves (MMcfe) Beginning proved undeveloped reserves 2,568,346 Undeveloped reserves transferred to developed(a) (735,076 ) Price Revisions 5,066 Revisions Due to Plan Changes (b) (472,118 ) Revisions Due to Changes Due to Well Performance (b) 107,421 Extension and discoveries (c) 1,698,908 Ending proved undeveloped reserves(d) 3,172,547 _________ (a) During 2017 , various exploration and development drilling and evaluations were completed. Approximately, $ 247,459 of capital was spent in the year ended December 31, 2017 related to undeveloped reserves that were transferred to developed. (b) The downward revisions for 2017 is due to corporate planning changes by our JV partner in Ohio Utica which resulted in PUD's being removed. (c) Extensions and discoveries are due mainly to the addition of wells on our Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology. (d) Included in proved undeveloped reserves at December 31, 2017 are approximately 301,063 MMcfe of reserves that have been reported for more than five years. These reserves specifically relate to GOB (a rubble zone formed in the cavity created by the extraction of coal) production due to a complex fracture being generated in the overburden strata above the mined seam. Mining operations take a significant amount of time and our GOB forecasts are consistent with the future plans of the Buchanan Mine that was sold in March 2016 to Coronado IV LLC (See Note 2 - Discontinued Operations for more information) with the rights to this gas being retained by the Company. Evidence also exists that supports the continual operation of the mine beyond the current plan, unless there was an extreme circumstance resulting from an external factor. These reasons constitute the specific circumstances that exist to continue recognizing these reserves for CNX. At December 31, 2017 there were no wells pending the determination of proved reserves. The following table represents the capitalized exploratory well cost activity as indicated: December 31, 2017 2016 2015 Costs reclassified to wells, equipment and facilities based on the determination of proved reserves $ 40,149 $ 40,917 $ 17,179 Costs expensed due to determination of dry hole or abandonment of project $ — $ — $ — CNX proved natural gas reserves are located in the United States. |