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 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 June 30, 2020: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 123,480 $ 29,147 $ 22,929 $ 220 $ 175,776 $ — $ — $ — $ 175,776 (A) Purchased Gas Revenue — — — 20,424 20,424 — — — 20,424 Midstream Revenue — — — — — 66,149 — (53,958) 12,191 Gain (Loss) on Commodity Derivative Instruments 79,006 21,257 13,005 (176,571) (63,303) — — — (63,303) (B) Other Operating Income — — — 4,248 4,248 — — (495) 3,753 (C) Total Revenue and Other Operating Income $ 202,486 $ 50,404 $ 35,934 $ (151,679) $ 137,145 $ 66,149 $ — $ (54,453) $ 148,841 Total Operating Expense $ 144,857 $ 42,876 $ 29,420 $ 74,617 $ 291,770 $ 25,195 $ — $ (54,453) $ 262,512 (D) Earnings (Loss) Before Income Tax $ 57,629 $ 7,528 $ 6,514 $ (263,934) $ (192,263) $ 30,296 $ 2,835 $ — $ (159,132) Segment Assets $ 6,584,989 $ 1,754,639 $ 134,047 $ (153,991) $ 8,319,684 (E) Depreciation, Depletion and Amortization $ 102,901 $ 10,644 $ — $ — $ 113,545 Capital Expenditures $ 120,474 $ 14,378 $ — $ — $ 134,852 (A) Included in Total Natural Gas, NGL and Oil Revenue are sales of $33,711 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Included in Other Gas is a realized gain on commodity derivative instruments of $29,015 related to the monetization of hedges (see Note 11 - Derivative Instruments for more information). (C) Includes equity in loss of unconsolidated affiliates of $1,259 for Total E&P. (D) Included in Marcellus and Utica are $51,903 and $2,055, respectively, of intercompany gathering fees. (E) Includes investments in unconsolidated equity affiliates of $15,159 for Total E&P. Industry segment results for the three months ended June 30, 2019: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 237,257 $ 65,213 $ 39,638 $ 757 $ 342,865 $ — $ — $ — $ 342,865 (F) 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 (G) Total Revenue and Other Operating Income $ 244,088 $ 67,960 $ 40,723 $ 233,481 $ 586,252 $ 78,450 $ — $ (59,670) $ 605,032 Total Operating Expense $ 193,707 $ 50,019 $ 33,120 $ 88,673 $ 365,519 $ 25,955 $ — $ (59,670) $ 331,804 (H) 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 (I) Depreciation, Depletion and Amortization $ 120,705 $ 8,294 $ — $ — $ 128,999 Capital Expenditures $ 224,684 $ 104,543 $ — $ — $ 329,227 (F) Included in Total Natural Gas, NGL and Oil Revenue are sales of $48,476 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (G) Includes equity in earnings of unconsolidated affiliates of $527 for Total E&P. (H) Included in Marcellus and Utica are $59,014 and $541, respectively, of intercompany gathering fees. (I) Includes investments in unconsolidated equity affiliates of $17,637 for Total E&P. Industry segment results for the six months ended June 30, 2020: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 302,524 $ 70,597 $ 53,652 $ 497 $ 427,270 $ — $ — $ — $ 427,270 (A) Purchased Gas Revenue — — — 46,783 46,783 — — — 46,783 Midstream Revenue — — — — — 146,490 — (115,893) 30,597 Gain (Loss) on Commodity Derivative Instruments 147,458 39,257 22,692 (157,568) 51,839 — — — 51,839 (B) Other Operating Income — — — 9,714 9,714 — — (1,003) 8,711 (C) Total Revenue and Other Operating Income $ 449,982 $ 109,854 $ 76,344 $ (100,574) $ 535,606 $ 146,490 $ — $ (116,896) $ 565,200 Total Operating Expense $ 328,029 $ 91,693 $ 63,674 $ 213,202 $ 696,598 $ 526,109 $ — $ (116,896) $ 1,105,811 (D) Earnings (Loss) Before Income Tax $ 121,953 $ 18,161 $ 12,670 $ (391,600) $ (238,816) $ (399,248) $ 21,127 $ — $ (616,937) Segment Assets $ 6,584,989 $ 1,754,639 $ 134,047 $ (153,991) $ 8,319,684 (E) Depreciation, Depletion and Amortization $ 222,053 $ 20,656 $ — $ — $ 242,709 Capital Expenditures $ 239,867 $ 47,034 $ — $ — $ 286,901 (A) Included in Total Natural Gas, NGL and Oil Revenue are sales of $79,367 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Included in Other Gas is a realized gain on commodity derivative instruments of $83,997 related to the monetization of hedges (see Note 11 - Derivative Instruments for more information). (C) Includes equity in loss of unconsolidated affiliates of $1,421 for Total E&P. (D) Included in Marcellus and Utica are $111,079 and $4,814 , 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). (E) Includes investments in unconsolidated equity affiliates of 15,159 for Total E&P. Industry segment results for the six months ended June 30, 2019: Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGL and Oil Revenue $ 530,514 $ 158,164 $ 89,473 $ 660 $ 778,811 $ — $ — $ — $ 778,811 (F) 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 (G) Total Revenue and Other Operating Income $ 509,887 $ 151,310 $ 86,256 $ 98,848 $ 846,301 $ 151,019 $ — $ (113,857) $ 883,463 Total Operating Expense $ 372,575 $ 101,365 $ 65,754 $ 163,877 $ 703,571 $ 50,919 $ — $ (113,857) $ 640,633 (H) 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 (I) Depreciation, Depletion and Amortization $ 237,780 $ 16,379 $ — $ — $ 254,159 Capital Expenditures $ 448,475 $ 179,890 $ — $ — $ 628,365 (F) Included in Total Natural Gas, NGL 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 comprises over 10% of revenue from contracts with external customers for the period. (G) Includes equity in earnings of unconsolidated affiliates of $1,030 for Total E&P. (H) Included in Marcellus and Utica are $112,476 and $1,205 , respectively, of intercompany gathering fees. (I) Includes investments in unconsolidated equity affiliates of $17,637 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, 2020 2019 2020 2019 Total Segment Revenue from Contracts with External Customers $ 208,391 $ 380,528 $ 504,650 $ 851,138 (Loss) Gain on Commodity Derivative Instruments (63,303) 221,581 51,839 26,205 Other Operating Income 3,753 2,923 8,711 6,120 Total Consolidated Revenue and Other Operating Income $ 148,841 $ 605,032 $ 565,200 $ 883,463 Loss Before Income Tax: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Segment (Loss) Earnings Before Income Taxes for Reportable Business Segments: E&P $ (192,263) $ 188,260 $ (238,816) $ 81,830 Midstream 30,296 44,414 (399,248) 76,998 Total Segment (Loss) Earnings Before Income Taxes for Reportable Business Segments $ (161,967) $ 232,674 $ (638,064) $ 158,828 Unallocated Expenses: Other (Expense) Income (4,547) 501 (9,561) 1,531 Gain on Certain Asset Sales 7,726 387 19,769 4,530 (Loss) Gain on Debt Extinguishment (344) (77) 10,919 (7,614) (Loss) Earnings Before Income Tax $ (159,132) $ 233,485 $ (616,937) $ 157,275 Total Assets: June 30, 2020 2019 Segment Assets for Total Reportable Business Segments: E&P $ 6,584,989 $ 6,887,043 Midstream 1,754,639 2,116,492 Intercompany Eliminations (153,991) (3,041) Items Excluded from Segment Assets: Cash and Cash Equivalents 19,607 32,611 Recoverable Income Taxes 114,440 113,592 Total Consolidated Assets $ 8,319,684 $ 9,146,697 |