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. It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, realized gain on commodity derivative instruments that were partially monetized prior to their settlement dates, exploration and production related other costs, impairments of exploration and production properties, 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. CNX owns and controls 100% of CNX Gathering, making CNXM a single-sponsor master limited partnership and thus the Company consolidates CNXM. The Midstream Division is comprised of a single Midstream segment. The Company's unallocated expenses include other income/expense, gain on asset sales related to non-core assets, gain/loss on debt extinguishment 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 March 31, 2020: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 179,044 $ 41,450 $ 30,723 $ 277 $ 251,494 $ — $ — $ — $ 251,494 (A) Purchased Gas Revenue — — — 26,359 26,359 — — — 26,359 Midstream Revenue — — — — — 80,341 — (61,935) 18,406 Gain on Commodity Derivative Instruments 68,452 18,000 9,687 19,003 115,142 — — — 115,142 Other Operating Income — — — 5,466 5,466 — — (508) 4,958 (B) Total Revenue and Other Operating Income $ 247,496 $ 59,450 $ 40,410 $ 51,105 $ 398,461 $ 80,341 $ — $ (62,443) $ 416,359 Total Operating Expense $ 183,172 $ 48,817 $ 34,254 $ 138,585 $ 404,828 $ 500,915 $ — $ (62,443) $ 843,300 (C) Earnings (Loss) Before Income Tax $ 64,324 $ 10,633 $ 6,156 $ (127,666) $ (46,553) $ (429,544) $ 18,293 $ — $ (457,804) Segment Assets $ 6,785,652 $ 1,754,819 $ 147,094 $ (158,615) $ 8,528,950 (D) Depreciation, Depletion and Amortization $ 119,152 $ 10,012 $ — $ — $ 129,164 Capital Expenditures $ 119,393 $ 32,656 $ — $ — $ 152,049 (A) Included in Total Natural Gas, NGL and Oil Revenue are sales of $45,656 to Direct Energy Business Marketing LLC and $32,176 to NJR Energy Services Company, each of which comprises over 10% of revenue from contracts with external customers for the period. (B) Includes equity in loss of unconsolidated affiliates of $161 for Total E&P. (C) Included in Marcellus and Utica are $59,176 and $2,759, respectively of intercompany gathering fees. Included in Midstream is a goodwill impairment charge of $473,045 (See Note 6 - Goodwill and Other Intangible Assets for more information). (D) Includes investments in unconsolidated equity affiliates of $16,549 for Total E&P. Industry segment results for the three months ended March 31, 2019: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 293,257 $ 92,951 $ 49,835 $ (97) $ 435,946 $ — $ — $ — $ 435,946 (D) Purchased Gas Revenue — — — 16,221 16,221 — — — 16,221 Midstream Revenue — — — — — 72,569 — (54,126) 18,443 Loss on Commodity Derivative Instruments (27,458) (9,601) (4,302) (154,015) (195,376) — — — (195,376) Other Operating Income — — — 3,258 3,258 — — (61) 3,197 (E) Total Revenue and Other Operating Income $ 265,799 $ 83,350 $ 45,533 $ (134,633) $ 260,049 $ 72,569 $ — $ (54,187) $ 278,431 Total Operating Expense $ 178,868 $ 50,333 $ 32,634 $ 76,217 $ 338,052 $ 24,962 $ — $ (54,187) $ 308,827 (F) Earnings (Loss) Before Income Tax $ 86,931 $ 33,017 $ 12,899 $ (239,277) $ (106,430) $ 32,584 $ (2,364) $ — $ (76,210) Segment Assets $ 6,638,207 $ 2,011,616 $ 137,564 $ (10,026) $ 8,777,361 (G) Depreciation, Depletion and Amortization $ 117,075 $ 8,086 $ — $ — $ 125,161 Capital Expenditures $ 223,791 $ 75,347 $ — $ — $ 299,138 (D) Included in Total Natural Gas, NGL and Oil Revenue are sales of $67,769 to Direct Energy Business Marketing LLC and $66,001 to NJR Energy Services Company, each of which comprises over 10% of revenue from contracts with external customers for the period. (E) Includes equity in earnings of unconsolidated affiliates of $503 for Total E&P. (F) Included in Marcellus and Utica are $53,462 and $664, respectively of intercompany gathering fees. (G) Includes investments in unconsolidated equity affiliates of $17,860 for Total E&P. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income For the Three Months Ended March 31, 2020 2019 Total Segment Revenue from Contracts with External Customers $ 296,259 $ 470,610 Gain (Loss) on Commodity Derivative Instruments 115,142 (195,376) Other Operating Income 4,958 3,197 Total Consolidated Revenue and Other Operating Income $ 416,359 $ 278,431 Loss Before Income Tax: For the Three Months Ended March 31, 2020 2019 Segment Earnings (Loss) Before Income Taxes for Reportable Business Segments: E&P $ (46,553) $ (106,430) Midstream (429,544) 32,584 Total Segment Earnings (Loss) Before Income Taxes for Reportable Business Segments $ (476,097) $ (73,846) Unallocated Expenses: Other (Expense) Income (5,013) 1,030 Gain on Certain Asset Sales 12,043 4,143 Gain (Loss) on Debt Extinguishment 11,263 (7,537) Loss Before Income Tax $ (457,804) $ (76,210) Total Assets: March 31, 2020 2019 Segment Assets for Total Reportable Business Segments: E&P $ 6,785,652 $ 6,638,207 Midstream 1,754,819 2,011,616 Intercompany Eliminations (158,615) (10,026) Items Excluded from Segment Assets: Cash and Cash Equivalents 31,833 23,972 Recoverable Income Taxes 115,261 113,592 Total Consolidated Assets $ 8,528,950 $ 8,777,361 |