Segment Information | SEGMENT INFORMATION: CNX consists of two principal business divisions: Exploration and Production (E&P) and Midstream. The principal activity of the E&P Division, which includes four reportable segments, is to produce pipeline quality natural gas for sale primarily to gas wholesalers. The E&P Division's reportable segments are Marcellus Shale, Utica Shale, Coalbed Methane, and Other Gas. The Other Gas Segment is primarily related to shallow oil and gas production which is not significant to the Company due to sale of substantially all of CNX's shallow oil and gas assets in the 2018 period (See Note 5 - Acquisitions and Dispositions for more information). It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, exploration and production related other costs, as well as various other operating activities assigned to the E&P Division but not allocated to each individual segment. CNX's Midstream Division's principal activity is the ownership, operation, development and acquisition of natural gas gathering and other midstream energy assets of CNX Gathering and CNXM, which provide natural gas gathering services for the Company's produced gas, as well as for other independent third-parties in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. Excluded from the Midstream Division are the gathering assets and operations of CNX that have not been contributed to CNX Gathering and CNXM. As a result of the Midstream Acquisition (See Note 5 - Acquisitions and Dispositions for more information), CNX owns and controls 100% of CNX Gathering, making CNXM a single-sponsor master limited partnership and thus the Company began consolidating CNXM on January 3, 2018. The Company's unallocated expenses include other expense, gain on asset sales related to non-core assets, gain on previously held equity interest, loss on debt extinguishment, impairment of other intangible assets and income taxes. In the preparation of the following information, intersegment sales have been recorded at amounts approximating market prices. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses. Assets are reflected at the division level for E&P and are not allocated between each individual E&P segment. These assets are not allocated to each individual segment due to the diverse asset base controlled by CNX, whereby each individual asset may service more than one segment within the division. An allocation of such asset base would not be meaningful or representative on a segment by segment basis. Industry segment results for the three months ended June 30, 2019 : Marcellus Shale Utica Shale Coalbed Methane Other Gas Total E&P Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 237,257 $ 65,213 $ 39,638 $ 757 $ 342,865 $ — $ — $ — $ 342,865 (A) Purchased Gas Revenue — — — 18,768 18,768 — — — 18,768 Midstream Revenue — — — — — 78,450 — (59,555 ) 18,895 Gain on Commodity Derivative Instruments 6,831 2,747 1,085 210,918 221,581 — — — 221,581 Other Operating Income — — — 3,038 3,038 — — (115 ) 2,923 (B) Total Revenue and Other Operating Income $ 244,088 $ 67,960 $ 40,723 $ 233,481 $ 586,252 $ 78,450 $ — $ (59,670 ) $ 605,032 Earnings Before Income Tax $ 50,381 $ 17,941 $ 7,603 $ 112,335 $ 188,260 $ 44,414 $ 811 $ — $ 233,485 Segment Assets $ 6,887,043 $ 2,116,492 $ 146,203 $ (3,041 ) $ 9,146,697 (C) Depreciation, Depletion and Amortization $ 120,705 $ 8,294 $ — $ 128,999 Capital Expenditures $ 224,684 $ 104,543 $ — $ — $ 329,227 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $48,476 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with customers for the period. (B) Includes equity in earnings of unconsolidated affiliates of $527 for Total E&P. (C) Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P. Industry segment results for the three months ended June 30, 2018 : Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 178,305 $ 107,758 $ 46,882 $ 1,572 $ 334,517 $ — $ — $ — $ 334,517 (D) Purchased Gas Revenue — — — 9,930 9,930 — — — 9,930 Midstream Revenue — — — — — 61,325 — (37,842 ) 23,483 Gain on Commodity Derivative Instruments 9,128 5,371 2,155 9,006 25,660 — — — 25,660 Other Operating Income — — — 8,595 8,595 — — (61 ) 8,534 (E) Total Revenue and Other Operating Income $ 187,433 $ 113,129 $ 49,037 $ 29,103 $ 378,702 $ 61,325 $ — $ (37,903 ) $ 402,124 Earnings (Loss) Before Income Tax $ 47,273 $ 46,486 $ 12,405 $ (64,039 ) $ 42,125 $ 27,795 $ (39,628 ) $ — $ 30,292 Segment Assets $ 6,055,545 $ 1,830,007 $ 333,372 $ (11,166 ) $ 8,207,758 (F) Depreciation, Depletion and Amortization $ 111,125 $ 7,962 $ — $ — $ 119,087 Capital Expenditures $ 238,889 $ 25,285 $ — $ — $ 264,174 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $36,849 to NJR Energy Services Company and $34,644 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with customers for the period. (E) Includes equity in earnings of unconsolidated affiliates of $1,669 for Total E&P. (F) Includes investments in unconsolidated equity affiliates of $22,347 for Total E&P. Industry segment results for the six months ended June 30, 2019 : Marcellus Shale Utica Shale Coalbed Methane Other Gas Total E&P Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 530,514 $ 158,164 $ 89,473 $ 660 $ 778,811 $ — $ — $ — $ 778,811 (A) Purchased Gas Revenue — — — 34,989 34,989 — — — 34,989 Midstream Revenue — — — — — 151,019 — (113,681 ) 37,338 (Loss) Gain on Commodity Derivative Instruments (20,627 ) (6,854 ) (3,217 ) 56,903 26,205 — — — 26,205 Other Operating Income — — — 6,296 6,296 — — (176 ) 6,120 (B) Total Revenue and Other Operating Income $ 509,887 $ 151,310 $ 86,256 $ 98,848 $ 846,301 $ 151,019 $ — $ (113,857 ) $ 883,463 Earnings (Loss) Before Income Tax $ 137,312 $ 49,945 $ 20,502 $ (125,929 ) $ 81,830 $ 76,998 $ (1,553 ) $ — $ 157,275 Segment Assets $ 6,887,043 $ 2,116,492 $ 146,203 $ (3,041 ) $ 9,146,697 (C) Depreciation, Depletion and Amortization $ 237,780 $ 16,379 $ — $ — $ 254,159 Capital Expenditures $ 448,475 $ 179,890 $ — $ — $ 628,365 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $116,245 to Direct Energy Business Marketing LLC and $94,447 to NJR Energy Services Company, each of which comprise over 10% of revenue from contracts with customers for the period. (B) Includes equity in earnings of unconsolidated affiliates of $1,030 for Total E&P. (C) Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P. Industry segment results for the six months ended June 30, 2018 : Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 383,321 $ 238,080 $ 104,383 $ 14,356 $ 740,140 $ — $ — $ — $ 740,140 (D) Purchased Gas Revenue — — — 27,985 27,985 — — — 27,985 Midstream Revenue — — — — — 125,503 — (75,766 ) 49,737 (Loss) Gain on Commodity Derivative Instruments (385 ) 897 (275 ) 60,510 60,747 — — — 60,747 Other Operating Income — — — 19,386 19,386 — — (142 ) 19,244 (E) Total Revenue and Other Operating Income $ 382,936 $ 238,977 $ 104,108 $ 122,237 $ 848,258 $ 125,503 $ — $ (75,908 ) $ 897,853 Earnings (Loss) Before Income Tax $ 91,515 $ 102,593 $ 25,522 $ (77,695 ) $ 141,935 $ 63,329 $ 584,268 $ — $ 789,532 Segment Assets $ 6,055,545 $ 1,830,007 $ 333,372 $ (11,166 ) $ 8,207,758 (F) Depreciation, Depletion and Amortization $ 226,991 $ 16,763 $ — $ — $ 243,754 Capital Expenditures $ 455,397 $ 41,262 $ — $ — $ 496,659 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $115,845 to NJR Energy Services Company and $92,571 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with customers for the period. (E) Includes equity in earnings of unconsolidated affiliates of $3,447 for Total E&P. (F) Includes investments in unconsolidated equity affiliates of $22,347 for Total E&P. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Total Segment Revenue from Contracts with External Customers $ 380,528 $ 367,930 $ 851,138 $ 817,862 Gain on Commodity Derivative Instruments 221,581 25,660 26,205 60,747 Other Operating Income 2,923 8,534 6,120 19,244 Total Consolidated Revenue and Other Operating Income $ 605,032 $ 402,124 $ 883,463 $ 897,853 Earnings Before Income Tax: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Segment Income Before Income Taxes for Reportable Business Segments: Total E&P $ 188,260 $ 42,125 $ 81,830 $ 141,935 Midstream 44,414 27,795 76,998 63,329 Total Segment Income Before Income Taxes for Reportable Business Segments $ 232,674 $ 69,920 $ 158,828 $ 205,264 Unallocated Expenses: Other Income (Expense) 501 (575 ) 1,531 5,917 Gain on Certain Asset Sales 387 3,010 4,530 12,386 Gain on Previously Held Equity Interest — — — 623,663 Loss on Debt Extinguishment (77 ) (23,413 ) (7,614 ) (39,048 ) Impairment of Other Intangible Assets — (18,650 ) — (18,650 ) Earnings Before Income Tax $ 233,485 $ 30,292 $ 157,275 $ 789,532 Total Assets: June 30, 2019 2018 Segment Assets for Total Reportable Business Segments: E&P $ 6,887,043 $ 6,055,545 Midstream 2,116,492 1,830,007 Intercompany Eliminations (3,041 ) (11,166 ) Items Excluded from Segment Assets: Cash and Cash Equivalents 32,611 54,846 Recoverable Income Taxes 113,592 27,780 Assets Held for Sale — 250,746 Total Consolidated Assets $ 9,146,697 $ 8,207,758 |