Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 20, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-14901 | ||
Entity Registrant Name | CNX Resources Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0337383 | ||
Entity Address, Address Line One | CNX Center | ||
Entity Address, Address Line Two | 1000 CONSOL Energy Drive Suite 400 | ||
Entity Address, City or Town | Canonsburg | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15317-6506 | ||
City Area Code | 724 | ||
Local Phone Number | 485-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,246,902,938 | ||
Entity Common Stock, Shares Outstanding | 202,489,683 | ||
Documents Incorporated by Reference | Portions of CNX's Proxy Statement for the Annual Meeting of Shareholders to be held on May 6, 2021, are incorporated by reference in Items 10, 11, 12, 13 and 14 of Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001070412 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock ($.01 par value) | ||
Trading Symbol | CNX | ||
Security Exchange Name | NYSE | ||
Preferred Share Purchase Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Share Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
(Loss) Gain on Commodity Derivative Instruments | $ (1,632,733) | $ 172,982 | $ 376,105 |
Other Revenue and Operating Income | 105,883 | 82,459 | 87,992 |
Total Revenue and Other Operating Income | 756,792 | 1,257,978 | 1,922,449 |
Operating Expense | |||
Lease Operating Expense | 46,256 | 40,407 | 65,443 |
Production, Ad Valorem and Other Fees | 34,051 | 24,196 | 27,461 |
Depreciation, Depletion and Amortization | 515,118 | 501,821 | 508,463 |
Purchased Gas Costs | 93,776 | 100,902 | 90,553 |
Impairment of Exploration and Production Properties | 0 | 61,849 | 327,400 |
Impairment of Goodwill | 0 | 473,045 | 0 |
Impairment of Unproved Properties and Expirations | 0 | 0 | 119,429 |
Selling, General and Administrative Costs | 112,757 | 109,375 | 143,550 |
Other Operating Expense | 68,655 | 85,472 | 79,255 |
Total Operating Expense | 1,234,874 | 1,697,744 | 1,736,473 |
Other Expense | |||
Other Expense | 15,748 | 23,584 | 2,862 |
Gain on Asset Sales and Abandonments, net | (42,210) | (21,224) | (35,563) |
Loss (Gain) on Debt Extinguishment | 33,737 | (10,101) | 7,614 |
Interest Expense | 151,156 | 170,806 | 151,379 |
Total Other Expense | 158,431 | 163,065 | 126,292 |
Total Costs and Expenses | 1,393,305 | 1,860,809 | 1,862,765 |
(Loss) Earnings Before Income Tax | (636,513) | (602,831) | 59,684 |
Income Tax (Benefit) Expense | (137,870) | (174,087) | 27,736 |
Net (Loss) Income | (498,643) | (428,744) | 31,948 |
Less: Net Income Attributable to Noncontrolling Interests | 0 | 55,031 | 112,678 |
Net Loss Attributable to CNX Resources Shareholders | $ (498,643) | $ (483,775) | $ (80,730) |
Loss Per Share | |||
Basic (in usd per share) | $ (2.31) | $ (2.43) | $ (0.42) |
Diluted (in usd per share) | (2.31) | (2.43) | (0.42) |
Dividends Declared Per Share (in usd per share) | $ 0 | $ 0 | $ 0 |
Natural Gas, NGLs and Oil Revenue | |||
Revenue | $ 2,183,929 | $ 896,745 | $ 1,364,325 |
Purchased Gas Revenue | |||
Revenue | 99,713 | 105,792 | 94,027 |
Transportation, Gathering and Compression | |||
Operating Expense | |||
Cost of Goods and Services Sold | 343,635 | 285,683 | 330,539 |
Exploration and Production Related Other Costs | |||
Operating Expense | |||
Cost of Goods and Services Sold | $ 20,626 | $ 14,994 | $ 44,380 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Income | $ (498,643) | $ (428,744) | $ 31,948 |
Other Comprehensive (Loss) Income: | |||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: $(234), $914, $1,664) | 661 | (2,579) | (4,701) |
Comprehensive (Loss) Income | (497,982) | (431,323) | 27,247 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 0 | 55,031 | 112,678 |
Comprehensive Loss Attributable to CNX Resources Shareholders | $ (497,982) | $ (486,354) | $ (85,431) |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustment For Actuarially Determined Liabilities | |||
Other comprehensive income, tax expense | $ (234) | $ 914 | $ 1,664 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and Cash Equivalents | $ 3,565 | $ 15,617 |
Restricted Cash | 0 | 735 |
Accounts and Notes Receivable: | ||
Trade (Note 17) | 330,122 | 145,929 |
Other Receivables | 8,924 | 4,238 |
Supplies Inventories | 6,147 | 9,657 |
Recoverable Income Taxes | 72 | 88 |
Derivative Instruments (Note 19) | 95,002 | 84,657 |
Prepaid Expenses | 15,975 | 12,411 |
Total Current Assets | 459,807 | 273,332 |
Property, Plant and Equipment (Note 8): | ||
Property, Plant and Equipment | 11,362,102 | 10,963,996 |
Less—Accumulated Depreciation, Depletion and Amortization | 4,372,619 | 3,938,451 |
Total Property, Plant and Equipment—Net | 6,989,483 | 7,025,545 |
Other Assets: | ||
Operating Lease Right-of-Use Assets (Note 13) | 56,022 | 108,683 |
Derivative Instruments (Note 19) | 131,994 | 188,237 |
Goodwill (Note 9) | 323,314 | 323,314 |
Other Intangible Assets (Note 9) | 83,543 | 90,095 |
Restricted Cash | 0 | 5,247 |
Other | 56,588 | 27,311 |
Total Other Assets | 651,461 | 742,887 |
TOTAL ASSETS | 8,100,751 | 8,041,764 |
Current Liabilities: | ||
Accounts Payable | 121,751 | 118,185 |
Derivative Instruments (Note 19) | 521,598 | 42,329 |
Current Portion of Finance Lease Obligations (Note 13) | 555 | 6,876 |
Current Portion of Long-Term Debt (Note 12) | 0 | 22,574 |
Current Portion of Operating Lease Obligations (Note 13) | 22,940 | 52,575 |
Other Accrued Liabilities (Note 11) | 287,732 | 198,773 |
Total Current Liabilities | 954,576 | 441,312 |
Non-Current Liabilities: | ||
Long-Term Debt (Note 12) | 2,214,121 | 2,401,427 |
Finance Lease Obligations (Note 13) | 1,218 | 1,057 |
Operating Lease Obligations (Note 13) | 33,672 | 53,235 |
Derivative Instruments (Note 19) | 687,354 | 127,290 |
Deferred Income Taxes (Note 6) | 328,601 | 466,253 |
Asset Retirement Obligations (Note 7) | 88,859 | 84,712 |
Other | 92,077 | 44,041 |
Total Non-Current Liabilities | 3,445,902 | 3,178,015 |
TOTAL LIABILITIES | 4,400,478 | 3,619,327 |
Stockholders’ Equity: | ||
Common Stock, $0.01 Par Value; 500,000,000 Shares Authorized, 203,531,320 Issued and Outstanding at December 31, 2021; 220,440,993 Issued and Outstanding at December 31, 2020 | 2,039 | 2,208 |
Capital in Excess of Par Value | 2,834,863 | 2,959,357 |
Preferred Stock, 15,000,000 Shares Authorized, None Issued and Outstanding | 0 | 0 |
Retained Earnings | 877,894 | 1,476,056 |
Accumulated Other Comprehensive Loss | (14,523) | (15,184) |
TOTAL STOCKHOLDERS' EQUITY | 3,700,273 | 4,422,437 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,100,751 | $ 8,041,764 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, Issued (in shares) | 203,531,320 | 220,440,993 |
Common Stock, Outstanding (in shares) | 203,531,320 | 220,440,993 |
Preferred Stock, Authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred Stock, Issued (in shares) | 0 | 0 |
Preferred Stock, Outstanding (in shares) | 0 | 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Total CNX Resources Stockholders’ Equity | Common Stock | Capital in Excess of Par Value | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Non- Controlling Interest |
Balance, Beginning of Period at Dec. 31, 2018 | $ 5,081,743 | $ 4,329,958 | $ 1,990 | $ 2,264,063 | $ 2,071,809 | $ (7,904) | $ 751,785 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (Loss) Income | 31,948 | (80,730) | (80,730) | 112,678 | |||
Issuance of Common Stock | 565 | 565 | 9 | 556 | |||
Purchase and Retirement of Common Stock | (115,477) | (115,477) | (129) | (101,559) | (13,789) | ||
Shares Withheld for Taxes | (6,310) | (5,614) | (5,614) | (696) | |||
Amortization of Stock-Based Compensation Awards | 38,425 | 36,545 | 36,545 | 1,880 | |||
Other Comprehensive Loss | (4,701) | (4,701) | (4,701) | ||||
Distributions to CNXM Noncontrolling Interest Holders | (63,884) | (63,884) | |||||
Balance, End of Period at Dec. 31, 2019 | 4,962,309 | 4,160,546 | 1,870 | 2,199,605 | 1,971,676 | (12,605) | 801,763 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (Loss) Income | (428,744) | (483,775) | (483,775) | 55,031 | |||
Issuance of Common Stock | 2,057 | 2,057 | 8 | 2,049 | |||
Purchase and Retirement of Common Stock | (43,247) | (43,247) | (41) | (33,067) | (10,139) | ||
Shares Withheld for Taxes | (2,015) | (1,706) | (1,706) | (309) | |||
Amortization of Stock-Based Compensation Awards | 14,382 | 12,897 | 12,897 | 1,485 | |||
Equity Component of Convertible Senior Notes, net of Issuance Costs | 78,317 | 78,317 | 78,317 | ||||
Purchase of Capped Call | (26,351) | (26,351) | (26,351) | ||||
Other Comprehensive Loss | (2,579) | (2,579) | (2,579) | ||||
Distributions to CNXM Noncontrolling Interest Holders | (41,987) | (41,987) | |||||
CNXM Merger | (89,705) | 726,278 | 371 | 725,907 | (815,983) | ||
Balance, End of Period at Dec. 31, 2020 | 4,422,437 | 4,422,437 | 2,208 | 2,959,357 | 1,476,056 | (15,184) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (Loss) Income | (498,643) | (498,643) | (498,643) | ||||
Issuance of Common Stock | 5,087 | 5,087 | 7 | 5,080 | |||
Purchase and Retirement of Common Stock | (241,243) | (241,243) | (183) | (146,094) | (94,966) | ||
Shares Withheld for Taxes | (4,553) | (4,553) | (4,553) | ||||
Amortization of Stock-Based Compensation Awards | 16,560 | 16,560 | 7 | 16,553 | |||
Equity Component of Convertible Senior Notes, net of Issuance Costs | (33) | (33) | (33) | ||||
Other Comprehensive Loss | 661 | 661 | 661 | ||||
Balance, End of Period at Dec. 31, 2021 | $ 3,700,273 | $ 3,700,273 | $ 2,039 | $ 2,834,863 | $ 877,894 | $ (14,523) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net (Loss) Income | $ (498,643) | $ (428,744) | $ 31,948 |
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Continuing Operating Activities: | |||
Depreciation, Depletion and Amortization | 515,118 | 501,821 | 508,463 |
Amortization of Deferred Financing Costs | 27,052 | 21,202 | 7,747 |
Impairment of Exploration and Production Properties | 0 | 61,849 | 327,400 |
Impairment of Unproved Properties and Expirations | 0 | 0 | 119,429 |
Impairment of Goodwill | 0 | 473,045 | 0 |
Stock-Based Compensation | 16,560 | 14,382 | 38,425 |
Gain on Asset Sales and Abandonments, net | (42,210) | (21,224) | (35,563) |
Loss (Gain) on Debt Extinguishment | 33,737 | (10,101) | 7,614 |
Loss (Gain) on Commodity Derivative Instruments | 1,632,733 | (172,982) | (376,105) |
(Gain) Loss on Other Derivative Instruments | (8,485) | 13,051 | 0 |
Net Cash (Paid) Received in Settlement of Commodity Derivative Instruments | (539,016) | 461,217 | 69,780 |
Deferred Income Taxes | (137,887) | (118,300) | 79,092 |
Return on Equity Investment | 0 | 0 | 4,056 |
Other | (1,280) | 688 | (2,103) |
Changes in Operating Assets: | |||
Accounts and Notes Receivable | (184,461) | (4,895) | 118,622 |
Supplies Inventories | 1,487 | (2,673) | 2,731 |
Recoverable Income Taxes | 17 | 62,336 | 87,050 |
Prepaid Expenses | (3,204) | 4,923 | 3,115 |
Changes in Other Assets | (23,838) | (39) | 1,000 |
Changes in Operating Liabilities: | |||
Accounts Payable | 3,006 | (48,485) | (6,405) |
Accrued Interest | 9,486 | (4,314) | 4,529 |
Other Operating Liabilities | 107,498 | (6,453) | 13,242 |
Changes in Other Liabilities | 18,687 | (1,233) | (23,507) |
Net Cash Provided by Operating Activities | 926,357 | 795,071 | 980,560 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (465,861) | (487,291) | (1,192,599) |
Proceeds from Asset Sales | 45,251 | 48,322 | 45,160 |
Net Cash Used in Investing Activities | (420,610) | (438,969) | (1,147,439) |
Cash Flows from Financing Activities: | |||
Net Proceeds from (Payments on) CNX Revolving Credit Facility | (500,200) | ||
Net Proceeds from (Payments on) CNX Revolving Credit Facility | 31,200 | 49,000 | |
Payments on Miscellaneous Borrowings | (2,785) | (7,155) | (7,149) |
Payments on Long-Term Notes | (421,467) | (882,213) | (405,876) |
Net (Payments on) Proceeds from CSG Non-Revolving Credit Facilities | (160,544) | ||
Net (Payments on) Proceeds from CSG Non-Revolving Credit Facilities | 158,794 | 0 | |
Proceeds from Issuance of Convertible Senior Notes | 0 | 334,650 | 0 |
Purchase of Capped Call Related to Convertible Senior Notes | 0 | (35,673) | 0 |
Net (Payments on) Proceeds from CNXM Revolving Credit Facility | (106,000) | (20,750) | 227,750 |
Distributions to CNXM Noncontrolling Interest Holders | 0 | (41,987) | (63,884) |
Proceeds from Issuance of Common Stock | 5,087 | 2,057 | 565 |
Shares Withheld for Taxes | (4,553) | (2,015) | (6,310) |
Purchases of Common Stock | (245,243) | (37,247) | (117,477) |
Debt Issuance and Financing Fees | (14,476) | (26,047) | (10,655) |
Net Cash (Used in) Provided by Financing Activities | (523,781) | (350,786) | 165,964 |
Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | (18,034) | 5,316 | (915) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 21,599 | 16,283 | 17,198 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 3,565 | 21,599 | 16,283 |
CNX Senior Notes | |||
Cash Flows from Financing Activities: | |||
Proceeds from Issuance of Senior Notes | 0 | 707,000 | 500,000 |
CNXM Senior Notes | |||
Cash Flows from Financing Activities: | |||
Proceeds from Issuance of Senior Notes | $ 395,000 | $ 0 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES: A summary of the significant accounting policies of CNX Resources Corporation and subsidiaries (“CNX” or “the Company”) is presented below. These, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. Basis of Consolidation: The Consolidated Financial Statements include the accounts of CNX Resources Corporation, its wholly-owned subsidiaries, and its majority-owned and/or controlled subsidiaries. Investments in business entities in which CNX does not have control but has the ability to exercise significant influence over the operating and financial policies, are accounted for under the equity method. All significant intercompany transactions and accounts have been eliminated in consolidation. Investments in oil and natural gas producing entities are accounted for under the proportionate consolidation method. On September 28, 2020, the Merger (as defined in Note 4 – Acquisitions and Dispositions) of CNX Midstream Partners LP (CNXM) was completed. Prior to the Merger, public unitholders held a 46.9% equity interest in CNXM and CNX owned the remaining 53.1% equity interest. The earnings of CNXM that were attributed to its common units held by the public prior to the Merger are reflected in Net Income Attributable to Noncontrolling Interest in the Consolidated Statements of Income. There were no changes to our ownership interest in CNXM during the year ended December 31, 2021. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as various disclosures. Actual results could differ from those estimates. The most significant estimates included in, but not limited to, the preparation of the consolidated financial statements are related to long-lived assets (including intangible assets and goodwill), accounts receivable credit losses, the values of natural gas, NGLs, condensate and oil (collectively “natural gas”) reserves, asset retirement obligations, deferred income tax assets and liabilities, contingencies, fair value of derivative instruments, the fair value of the liability and equity components of the convertible senior notes, stock-based compensation and salary retirement benefits. Cash, Cash Equivalents, and Restricted Cash: Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term securities with original maturities of three months or less. Restricted cash at December 31, 2020 consisted of cash that the Company was contractually obligated to maintain in accordance with the terms of the Cardinal States Gathering LLC and CSG Holdings II LLC Credit Agreements, each dated March 13, 2020. During the year ended December 31, 2021 CNX, repaid in full the outstanding principal on both of these non-revolving credit facilities and terminated the Credit Agreements (See Note 12 - Long-Term Debt for more information). The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statement of cash flows: December 31, 2021 2020 2019 Cash and Cash Equivalents $ 3,565 $ 15,617 $ 16,283 Restricted Cash, Current Portion — 735 — Restricted Cash, Less Current Portion — 5,247 — Total Cash, Cash Equivalents, and Restricted Cash $ 3,565 $ 21,599 $ 16,283 Trade Accounts Receivable and Allowance for Credit Losses: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Management records an allowance for credit losses related to the collectability of third-party customers' receivables using the historical aging of the customer receivable balance. The collectability is determined based on past events, including historical experience, customer credit rating, as well as current market conditions. CNX monitors customer ratings and collectability on an on-going basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There were no material financing receivables with a contractual maturity greater than one year at December 31, 2021 or 2020. The following represents activity related to the allowance for credit losses for the years ended: December 31, 2021 2020 Allowance for Credit Losses - Trade, Beginning of Year $ 84 $ — Provision for Expected Credit Losses — 84 Allowance for Credit Losses - Trade, End of Period $ 84 $ 84 Allowance for Credit Losses - Other Receivables, Beginning of Year $ 3,248 $ 2,463 Provision for Expected Credit Losses 104 2,760 Write-off of Uncollectible Accounts (30) (1,975) Allowance for Credit Losses - Other Receivables, End of Period $ 3,322 $ 3,248 Inventories: Inventories are stated at the lower of cost or net realizable value. The cost of supplies inventory is determined by the average cost method and includes operating and maintenance supplies to be used in the Company's operations. Property, Plant and Equipment: CNX uses the successful efforts method of accounting for natural gas producing activities. Costs of property acquisitions, successful exploratory, development wells and related support equipment and facilities are capitalized. Periodic valuation provisions for impairment of capitalized costs of unproved mineral interests are expensed. Costs of unsuccessful exploratory wells are expensed when such wells are determined to be non-productive, or if the determination cannot be made after finding sufficient quantities of reserves to continue evaluating the viability of the project. The costs of producing properties and mineral interests are amortized using the units-of-production method. Depreciation, depletion and amortization expense is calculated based on the actual produced sales volumes multiplied by the applicable rate per unit, which is derived by dividing the net capitalized costs by the number of units expected to be produced over the life of the reserves. Wells and related equipment and intangible drilling costs are also amortized on a units-of-production method. Proved developed reserves, as estimated by petroleum engineers, are used to calculate amortization of wells and related equipment and facilities and amortization of intangible drilling costs. Total proved reserves, also estimated by petroleum engineers, are used to calculate depletion on property acquisitions. Proved oil and natural gas reserve estimates are based on geological and engineering evaluations of in-place hydrocarbon volumes. Units-of-production amortization rates are revised at least once per year, or more frequently if events and circumstances indicate an adjustment is necessary. Such revisions are accounted for prospectively as changes in accounting estimates. The Company recorded depreciation, depletion and amortization expense related to proved gas properties using the units-of-production method of $415,069, $400,948, and $424,238 for the years ended December 31, 2021, 2020 and 2019, respectively. Property, plant and equipment is recorded at cost upon acquisition. Expenditures which extend the useful lives of existing plant and equipment are capitalized. Interest costs applicable to major asset additions are capitalized during the construction period. Planned major maintenance costs which do not extend the useful lives of existing plant and equipment are expensed as incurred. Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives or lease terms, generally as follows: Years Buildings and Improvements 10 to 45 Machinery and Equipment 3 to 25 Gathering and Transmission 30 to 40 Leasehold Improvements Life of Lease Costs for purchased software are capitalized and amortized using the straight-line method over the estimated useful life which does not exceed seven years. Impairment of Long-Lived Assets: Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to its estimated fair value which is usually measured based on an estimate of future discounted cash flows. Impairment of equity investments is recorded when indicators of impairment are present, and the estimated fair value of the investment is less than the assets' carrying value. Impairment of Proved Properties: CNX performs a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable, over proved properties using the published NYMEX forward prices, timing, methods and other assumptions consistent with historical periods. When indicators of impairment are present, tests require that the Company first compare expected future undiscounted cash flows by asset group to their respective carrying values. If the carrying amount exceeds the estimated undiscounted future cash flows, a reduction of the carrying amount of the natural gas properties to their estimated fair values is required, which is determined based on discounted cash flow techniques using significant assumptions including projected revenues, future commodity prices and a market-specific weighted average cost of capital which are affected by expectations about future market and economic conditions. During the year ended December 31, 2020, CNX recognized certain indicators of impairments specific to our Southwest Pennsylvania Coalbed Methane asset group and determined that the carrying value of that asset group was not recoverable. The fair value of the asset group was estimated by using level 3 inputs which consisted of discounting the estimated future cash flows using discount rates and other assumptions that market participants would use in their estimates of fair value. As a result, an impairment of $61,849 was recognized and is included in Impairment of Exploration and Production Properties in the Consolidated Statements of Income. The impairment was related to an economic decision to temporarily idle certain wells and the related processing facility during the first quarter. During the fourth quarter of 2019, CNX identified certain indicators of impairment specific to our Central Pennsylvania Marcellus asset group and determined that the carrying value of that asset group was not recoverable. The fair value of the asset group was estimated by using level 3 inputs which consisted of discounting the estimated future cash flows using discount rates and other assumptions that market participants would use in their estimates of fair value. As a result, an impairment of $327,400 was included in Impairment of Exploration and Production Properties in the Consolidated Statements of Income. This impairment was related to 56 operated wells and approximately 51,000 acres within our Central Pennsylvania Marcellus proved properties in Armstrong, Indiana, Jefferson and Westmoreland counties. The majority of these properties were developed prior to 2013 and the last of these properties were developed in 2015. Impairment of Unproved Properties: Capitalized costs of unproved oil and gas properties are evaluated at least annually for recoverability on a prospective basis. Indicators of potential impairment include, but are not limited to, changes brought about by economic factors, commodity price outlooks, our geologists’ evaluation of the property, favorable or unfavorable activity on the property being evaluated and/or adjacent properties, potential shifts in business strategy employed by management and historical experience. The likelihood of an impairment of unproved oil and gas properties increases as the expiration of a lease term approaches if drilling activity has not commenced. If it is determined that the Company does not intend to drill on the property prior to expiration or does not have the intent and ability to extend, renew, trade, or sell the lease prior to expiration, an impairment expense is recorded. Expense for lease expirations that were not previously impaired are recorded as the leases expire. For the year ended December 31, 2019, CNX recorded an impairment related to unproved properties of $119,429 that was included in Impairment of Unproved Properties and Expirations in the Consolidated Statements of Income. These unproved properties are within CNX's Central Pennsylvania operating region and east of the acreage associated with the proved property impairment described above. Exploration expense, which is associated primarily with lease expirations, was $20,626, $14,994 and $44,380 for the years ended December 31, 2021, 2020 and 2019, respectively, and is included in Exploration and Production Related Other Costs in the Consolidated Statements of Income. Impairment of Goodwill: In connection with the Midstream Acquisition (as defined in Note 4 – Acquisitions and Dispositions), CNX recorded $796,359 of goodwill through the application of purchase accounting (See Note 9 - Goodwill and Other Intangible Assets for more information). The goodwill recorded was allocated in its entirety to the Midstream reporting unit within the Shale segment. Goodwill is the cost of an acquisition less the fair value of the identifiable net assets of the acquired business. Goodwill is not amortized, but rather it is evaluated for impairment annually during the fourth quarter, or more frequently if recent events or prevailing conditions indicate it is more likely than not that the fair value of a reporting unit is less than its carrying value. These indicators include, but are not limited to, overall financial performance, industry and market considerations, anticipated future cash flows and discount rates, changes in the stock price with regards to CNX, regulatory and legal developments, and other relevant factors. In connection with the annual evaluation of goodwill for impairment or earlier if an impairment indicator is identified, CNX may first consider qualitative factors to assess whether there are indicators that it is more likely than not that the fair value of a reporting unit may not exceed its carrying amount. If after assessing such factors or circumstances, CNX determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then a quantitative assessment is not required. If CNX chooses to bypass the qualitative assessment, or if it chooses to perform a qualitative assessment but is unable to qualitatively conclude that no impairment has occurred, then CNX will perform a quantitative assessment. In the case of a quantitative assessment, CNX estimates the fair value of the reporting unit with which the goodwill is associated using level 3 inputs and compares it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recognized for the excess of the reporting unit's carrying value over its fair value. The Company uses a combination of the income approach (generally a discounted cash flow method) and market approach (which may include the guideline public company method and/or the guideline transaction method) to estimate the fair value of a reporting unit. The income approach is used to estimate value based on the present value of future economic benefits that are expected to be produced by an asset or business entity. This approach generally involves two general steps: (i) The first step involves establishing a forecast of the estimated future net cash flows expected to accrue directly or indirectly to the owner of the asset over its remaining useful life or to the owner of the business entity (including a reporting unit). (ii) The second step involves discounting these estimated future net cash flows to their present value using a market rate of return. CNX determines the fair value based on estimated future revenues and earnings before deducting net interest expense (interest expense less interest income) and income taxes (EBITDA - a non-GAAP financial measure), and also includes estimates for capital expenditures, discounted to present value using an industry rate adjusted for company-specific risk, which management feels reflects the overall level of inherent risk of the reporting unit. These assumptions are affected by expectations about future market, industry and economic conditions. Cash flow projections are derived from board approved budgeted amounts and require us to make projections and assumptions for many years into the future for demand, competition and operating costs, among other variables. Subsequent cash flows are developed using growth or contraction rates that management believes are reasonably likely to occur. The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from business risks as described in Item 1A. Risk Factors of this Form 10-K. The fair value estimation process requires considerable judgment and determining the fair value is sensitive to changes in assumptions impacting management’s estimates of future financial results. Although CNX believes the estimates and assumptions used in estimating the fair value are reasonable and appropriate, different assumptions and estimates could materially impact the estimated fair value. Future results could differ from our current estimates and assumptions. In connection with CNX's assessment of goodwill in the first quarter of 2020 in relation to the deteriorating macroeconomic conditions, and the decline in the observable market value of CNXM securities both in relation to the COVID-19 pandemic and the overall decline in the master limited partnership (MLP) market space, an impairment indicator was identified. CNX bypassed the qualitative assessment and performed a quantitative test that utilized a combination of the income and market approaches to estimate the fair value of the Midstream reporting unit. As a result of this assessment, CNX concluded that the carrying value exceeded its estimated fair value, and as a result, an impairment of $473,045 was included in Impairment of Goodwill in the Consolidated Statements of Income. In connection with our annual assessment of goodwill in the fourth quarter of 2021, we bypassed the qualitative assessment and performed a quantitative test that utilized a combination of the income and market approaches to estimate the fair value of the Midstream reporting unit. As a result of this assessment, we concluded that the estimated fair value exceeded carrying value, and accordingly no adjustment to goodwill was necessary. Any adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges relating to the Midstream reporting unit. Impairment of Definite-Lived Intangible Assets: Definite-lived intangible assets are amortized on a straight-line basis over their estimated economic lives and they are reviewed for impairment when indicators of impairment are present. Other intangible assets are comprised of customer relationships which are amortized on a straight-line basis over approximately 17 years. Income Taxes: Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The provision for income taxes represents income taxes paid or payable for the current year and the change in deferred taxes, excluding the effects of acquisitions during the year. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a deferred tax benefit will not be realized. CNX evaluates all tax positions taken on the state and federal tax filings to determine if the position is more likely than not to be sustained upon examination. For positions that do not meet the more likely than not to be sustained criteria, the Company determines, on a cumulative probability basis, the largest amount of benefit that is more likely than not to be realized upon ultimate settlement. A previously recognized tax position is reversed when it is subsequently determined that a tax position no longer meets the more likely than not threshold to be sustained. The evaluation of the sustainability of a tax position and the probable amount that is more likely than not is based on judgment, historical experience and on various other assumptions that the Company believes are reasonable under the circumstances. The results of these estimates, that are not readily apparent from other sources, form the basis for recognizing an uncertain tax position liability. Actual results could differ from those estimates upon subsequent resolution of identified matters. Asset Retirement Obligations: CNX accrues the costs to dismantle and remove gas-related facilities upon exhaustion of mineral reserves and related surface reclamation using the accounting treatment prescribed by the Asset Retirement and Environmental Obligations Topic of the FASB Accounting Standards Codification. This topic requires the fair value of an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. Estimates are regularly reviewed by management and are revised for changes in future estimated costs and regulatory requirements. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset. Amortization of the capitalized asset retirement cost is generally determined on a units-of-production basis. Accretion of the asset retirement obligation is recognized over time and generally will escalate over the life of the producing asset, typically as production declines. Accretion is included in Depreciation, Depletion and Amortization in the Consolidated Statements of Income. Investment Plan: CNX has an investment plan that is available to most employees. Throughout the years ended December 31, 2021, 2020 and 2019, the Company's matching contribution was 6% of eligible compensation contributed by eligible employees. The Company may also make discretionary contributions to the Plan ranging from 1% to 6% of eligible compensation for eligible employees (as defined by the Plan). There were no such discretionary contributions made by CNX for the years ended December 31, 2021, 2020 and 2019. Total matching contribution payments and costs were $2,937, $2,976 and $3,460 for the years ended December 31, 2021, 2020 and 2019, respectively. Revenue Recognition: Revenues are recognized when the recognition criteria of ASC 606 are met, which generally occurs at the point in which title passes to the customers. For natural gas, NGL and oil revenue, this occurs at the contractual point of delivery. For revenues generated from natural gas gathering services provided to third-parties, this occurs when obligations under the terms of the contract with the shipper are satisfied. CNX sells a portion of its natural gas to accommodate the delivery points of its customers. In general, this gas is purchased at market price and re-sold on the same day at market price less a small transaction fee. These matching buy/sell transactions include a legal right of offset of obligations and have been simultaneously entered into with the counterparty. These transactions qualify for netting under the Nonmonetary Transactions Topic of the FASB Accounting Standards Codification and are, therefore, recorded net within the Consolidated Statements of Income in the Purchased Gas Revenue line. CNX purchases natural gas produced by third-parties at market prices less a fee. The gas purchased from third-parties is then resold to end users or gas marketers at current market prices. These revenues and expenses are recorded gross as Purchased Gas Revenue and Purchase Gas Costs, respectively, in the Consolidated Statements of Income. Purchased gas revenue is recognized when title passes to the customer. Purchased gas costs are recognized when title passes to CNX from the third-party. Contingencies: From time to time, CNX, or its subsidiaries, are subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations (including environmental remediation), employment and contract disputes and other claims and actions, arising out of the normal course of business. Liabilities are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Estimates are developed through consultation with legal counsel involved in the defense of these matters and are based upon the nature of the lawsuit, progress of the case in court, view of legal counsel, prior experience in similar matters and management's intended response. Environmental liabilities are not discounted or reduced by possible recoveries from third-parties. Legal fees associated with defending these various lawsuits and claims are expensed when incurred. Stock-Based Compensation: Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated in accordance with the provisions of the Stock Compensation Topic of the FASB Accounting Standards Codification. CNX recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the award's vesting term. See Note 15 - Stock-Based Compensation for more information. 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 are accounted for on a mark-to-market basis with the changes in fair value recorded in current period earnings. CNX enters into financial derivative instruments to manage its exposure to commodity price volatility. Natural gas commodity hedges are accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings. None of the Company's counterparty master agreements currently require CNX to post collateral for any of its positions. However, as stated in the counterparty master agreements, if CNX's obligations with any of its counterparties cease to be secured on the same basis as similar obligations with the other lenders under the credit facility, CNX would be required 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 the counterparties. CNX recognizes all financial derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets on a gross basis, generally measured based upon Level 2 inputs, which is further described in Note 18 - Fair Value of Financial Instruments. 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. 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. Recent Accounting Pronouncements: In May 2021, the FASB issued Accounting Standards Update (ASU) 2021-04 - Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This ASU provides guidance on how an issuer would measure and recognize the effect of these transactions. Specifically, it provides a principles-based framework to determine whether an issuer should recognize the modification or exchange as an adjustment to equity or an expense. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted. The Company is still evaluating the effect of adopting this guidance. In August 2020, the FASB issued ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This ASU simplifies an entity's accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features, simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification, requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards, requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of an entity's convertible debt at the instrument level, among other things. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2021 and will be applicable to the Convertible Senior Notes due May 2026 (“Convertible Notes”) that were issued in April 2020, for which the embedded conversion option was required to be separately accounted for as a component of stockholders’ equity. The Company adopted ASU 2020-06 on January 1, 2022 and in conjunction therewith recorded adjustments to, among other things, increase long-term debt for the value of the embedded conversion that was previously classified in additional paid-in-capital in stockholders’ equity. In March 2020, the FASB issued ASU 2020-04 - Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (IBORs) and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which clarifies that certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. Reclassifications: Certain amounts in prior periods have been reclassified to conform with the report classifications of the year ended December 31, 2021, with no effect on previously reported net income, stockholders' equity or statement of cash flows. Subsequent Events: The Company has evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE: Basic earnings per share is computed by dividing net income or net loss attributable to CNX shareholders by the weighted average shares outstanding during the reporting period. Diluted earnings per share is computed similarly to basic earnings per share, except that the weighted average shares outstanding are increased to include, if dilutive, additional shares from stock options, restricted stock units, performance share units and shares issuable upon conversion of CNX's outstanding Convertible Notes (See Note 12 - Long-Term Debt). The number of additional shares is calculated by assuming that outstanding stock options were exercised, that outstanding restricted stock units and performance share units were released, that the shares that are issuable from the Convertible Notes are converted (subject to the considerations discussed further in the paragraph below), and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. In periods when CNX recognizes a net loss, the impact of outstanding stock awards and the potential share settlement impact related to CNX’s Convertible Notes are excluded from the diluted loss per share calculation as their inclusion would have an antidilutive effect. Pursuant to the Merger (See Note 4 - Acquisitions and Dispositions for more information), all outstanding phantom units previously granted under the CNXM long-term incentive plan were converted into the right to receive 0.88 shares of common stock of CNX. As such, all outstanding phantom units were converted, effective as of the closing of the Merger, into CNX restricted stock units. Each CNX restricted stock unit is subject to the same vesting, forfeiture and other terms and conditions applicable to the converted CNXM phantom units. Under Accounting Standards Codification Topic 718, Compensation - Stock Compensation, it was determined that there was no additional compensation cost to record as the conversion of awards did not result in incremental fair value. CNXM's dilutive units did not have a material impact on the Company's earnings per share calculations for the period from January 1, 2020 through September 30, 2020 or the year ended December 31, 2019. The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be antidilutive: For the Years Ended December 31, 2021 2020 2019 Anti-Dilutive Options 2,990,094 4,200,509 4,696,264 Anti-Dilutive Restricted Stock Units 2,436,846 2,160,727 1,282,582 Anti-Dilutive Performance Share Units 996,863 721,244 752,899 Anti-Dilutive Performance Share Options — — 927,268 6,423,803 7,082,480 7,659,013 The Company expects to settle the principal amount of the Convertible Notes in cash. As a result, only the amount by which the conversion value exceeds the aggregated principal amount of the Convertible Notes is included in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted earnings per share when the average market price of the Company’s common stock for a given period exceeds the initial conversion price of $12.84 per share for the Convertible Notes. In connection with the Convertible Notes’ issuance, the Company entered into privately negotiated capped call transactions with certain counterparties, (the “Capped Calls” and “Capped Call Transactions”), which were not included in calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The computations for basic and diluted loss per share are as follows: For the Years Ended December 31, 2021 2020 2019 Net (Loss) Income $ (498,643) $ (428,744) $ 31,948 Less: Net Income Attributable to Non-Controlling Interest — 55,031 112,678 Net Loss Attributable to CNX Resources Shareholders $ (498,643) $ (483,775) $ (80,730) Weighted-Average Shares of Common Stock Outstanding 215,971,381 199,225,441 190,727,122 Effect of Diluted Shares* — — — Weighted-Average Diluted Shares of Common Stock Outstanding 215,971,381 199,225,441 190,727,122 Loss Per Share: Basic $ (2.31) $ (2.43) $ (0.42) Diluted $ (2.31) $ (2.43) $ (0.42) *During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is antidilutive. Shares of common stock outstanding were as follows: For the Years Ended December 31, 2021 2020 2019 Balance, Beginning of Year 220,440,993 186,642,962 198,663,342 Issuance Related to Stock-Based Compensation (1) 1,374,925 882,335 909,107 Retirement of Common Stock (2) (18,284,598) (4,138,527) (12,929,487) Issuance Related to CNXM Merger — 37,054,223 — Balance, End of Year 203,531,320 220,440,993 186,642,962 (1) See Note 15 - Stock-Based Compensation for additional information. (2) See Note 5 - Stock Repurchase for additional information. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS: Revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company has elected to exclude all taxes from the measurement of transaction price. For natural gas, NGL and oil, and purchased gas revenue, the Company generally considers the delivery of each unit (MMBtu or Bbl) to be a separate performance obligation that is satisfied upon delivery. Payment terms for these contracts typically require payment within 25 days of the end of the calendar month in which the hydrocarbons are delivered. A significant number of these contracts contain variable consideration because the payment terms refer to market prices at future delivery dates. In these situations, the Company has not identified a standalone selling price because the terms of the variable payments relate specifically to the Company’s efforts to satisfy the performance obligations. A portion of the contracts contain fixed consideration (i.e. fixed price contracts or contracts with a fixed differential to NYMEX or index prices). The fixed consideration is allocated to each performance obligation on a relative standalone selling price basis, which requires judgment from management. For these contracts, the Company generally concludes that the fixed price or fixed differentials in the contracts are representative of the standalone selling price. Revenue associated with natural gas, NGL and oil as presented on the accompanying Consolidated Statements of Income represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling natural gas, NGL and oil on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis. Included in Other Revenue and Operating Income in the Consolidated Statements of Income and in the below table are revenues generated from natural gas gathering services provided to third-parties. The gas gathering services are interruptible in nature and include charges for the volume of gas actually gathered and do not guarantee access to the system. Volumetric based fees are based on actual volumes gathered. The Company generally considers the interruptible gathering of each unit (MMBtu) of natural gas as a separate performance obligation. Payment terms for these contracts typically require payment within 25 days of the end of the calendar month in which the hydrocarbons are gathered. Disaggregation of Revenue: The following table is a disaggregation of revenue by major source: For the Years Ended December 31, 2021 2020 2019 Revenue from Contracts with Customers: Natural Gas Revenue $ 1,958,718 $ 823,132 $ 1,251,013 NGL Revenue 202,670 64,138 104,139 Oil/Condensate Revenue 22,541 9,475 9,173 Total Natural Gas, NGL and Oil Revenue 2,183,929 896,745 1,364,325 Purchased Gas Revenue 99,713 105,792 94,027 Other Sources of Revenue and Other Operating Income: (Loss) Gain on Commodity Derivative Instruments (1,632,733) 172,982 376,105 Other Revenue and Operating Income 105,883 82,459 87,992 Total Revenue and Other Operating Income $ 756,792 $ 1,257,978 $ 1,922,449 The disaggregated revenue information corresponds with the Company’s segment reporting found in Note 21 - Segment Information. Contract Balances: CNX invoices its customers once a performance obligation has been satisfied, at which point payment is unconditional. Accordingly, CNX's contracts with customers do not give rise to material contract assets or liabilities under ASC 606. The Company has no contract assets recognized from the costs to obtain or fulfill a contract with a customer. Transaction Price Allocated to Remaining Performance Obligations: ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied. However, the guidance provides certain practical expedients that limit this requirement, including when variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a series. A significant portion of CNX's natural gas, NGL and oil and purchased gas revenue is short-term in nature with a contract term of one year or less. For those contracts, CNX has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For revenue associated with contract terms greater than one year, a significant portion of the consideration in those contracts is variable in nature and the Company allocates the variable consideration in its contract entirely to each specific performance obligation to which it relates. Therefore, any remaining variable consideration in the transaction price is allocated entirely to wholly unsatisfied performance obligations. As such, the Company has not disclosed the value of unsatisfied performance obligations pursuant to the practical expedient. For natural gas, NGL and oil revenue associated with contract terms greater than one year with a fixed price component, the aggregate amount of the transaction price allocated to remaining performance obligations was $47,364 as of December 31, 2021. The Company expects to recognize net revenue of $23,143 in the next 12 months and $12,316 over the following 12 months, with the remainder recognized thereafter. For revenue associated with CNX's midstream contracts, which also have terms greater than one year, the interruptible gathering of each unit of natural gas represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions And Dispositions | ACQUISITIONS AND DISPOSITIONS: On July 26, 2020, CNX entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CNXM, CNX Midstream GP LLC (the “General Partner”) and CNX Resources Holding LLC., a wholly owned subsidiary of CNX (“Merger Sub”), pursuant to which Merger Sub merged with and into CNXM with CNXM surviving as an indirect wholly owned subsidiary of CNX (the “Merger”). On September 28, 2020, the Merger was completed and CNX issued 37,054,223 shares of common stock to acquire the 42,107,071 common units of CNXM not owned by CNX prior to the Merger at a fixed exchange ratio of 0.88 shares of CNX common stock for each CNXM common unit, for total implied consideration of $384,623. As a result of the Merger, CNXM’s common units are no longer publicly traded. Except for the Class B units of CNXM, which were automatically canceled immediately prior to the effective time of the Merger for no consideration in accordance with CNXM’s partnership agreement, the interests in CNXM owned by CNX and its subsidiaries remain outstanding as limited partner interests in the surviving entity. The General Partner will continue to own the non-economic general partner interest in the surviving entity. Because CNX controlled CNXM prior to the Merger and continues to control CNXM after the Merger, CNX accounted for the change in its ownership interest in CNXM as an equity transaction which was reflected as a reduction of noncontrolling interest with corresponding increases to common stock and capital in excess of par value. No gain or loss was recognized in its condensed consolidated statements of operations as a result of the Merger. The tax effects of the Merger were reported as adjustments to deferred income taxes and capital in excess of par value. Prior to the effective time of the Merger on September 28, 2020, public unitholders held a 46.9% equity interest in CNXM and CNX owned the remaining 53.1% equity interest. The earnings of CNXM that were attributed to its common units held by the public prior to the Merger are reflected in Net Income Attributable to Noncontrolling Interest in the Consolidated Statements of Income. There were no changes in CNX's ownership interest in CNXM during the year ended December 31, 2021. CNXM’s revolving credit facility (See Note 10 - Revolving Credit Facilities) and the CNXM Senior Notes due March 2026 (See Note 12 - Long-Term Debt) were not impacted by the Merger. The Company incurred $11,271 of transaction costs directly attributable to the Merger during the year ended December 31, 2020, including financial advisory, legal service and other professional fees, which were recorded to Other Expense in the Consolidated Statements of Income. |
Stock Repurchase
Stock Repurchase | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stock Repurchase | STOCK REPURCHASE: On January 26, 2021, the Company’s Board of Directors approved an increase in the aggregate amount of the previous $750,000 stock repurchase program plan to $900,000, and on October 25, 2021, the Board of Directors approved an additional increase in the aggregate amount of the stock repurchase program to $1,900,000. As of December 31, 2021 the amount available under the stock repurchase program is $1,014,424, and is not subject to an expiration date. The repurchases may be affected from time-to-time through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, accelerated stock repurchases, block trades, derivative contracts or otherwise in compliance with Rule 10b-18. The timing of any repurchases will be based on a number of factors, including available liquidity, the Company's stock price, the Company's financial outlook, and alternative investment options. The stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares and the Board may modify, suspend, or discontinue its authorization of the program at any time. The Board of Directors will continue to evaluate the size of the stock repurchase program based on CNX's free cash flow position, leverage ratio, and capital plans. During the year ended December 31, 2021, 18,284,598 shares were repurchased and retired at an average price of $13.17 per share for a total cost of $241,243. During the year ended December 31, 2020, 4,138,527 shares were repurchased and retired at an average price of $10.43 per share for a total cost of $43,247. During the year ended December 31, 2019, 12,929,487 shares were repurchased and retired at an average price of $8.91 per share for a total cost of $115,477. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: Income tax (benefit) expense provided on earnings consisted of: For the Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ — $ (55,799) $ (51,243) U.S. State 17 12 (113) 17 (55,787) (51,356) Deferred: U.S. Federal (157,626) (83,080) 47,717 U.S. State 19,739 (35,220) 31,375 (137,887) (118,300) 79,092 Total Income Tax (Benefit) Expense $ (137,870) $ (174,087) $ 27,736 The components of the net deferred taxes are as follows: December 31, 2021 2020 Deferred Tax Assets: Gas Derivatives $ 262,658 $ — Net Operating Loss- Federal 209,731 215,936 Net Operating Loss - State 128,592 129,641 Foreign Tax Credit 39,404 43,194 Federal Tax Credits 33,034 — Gas Well Closing 25,682 24,251 Operating Lease Liabilities 14,322 28,085 Salary Retirement 11,504 11,478 Equity Compensation 5,838 6,639 Other 8,613 9,416 Total Deferred Tax Assets 739,378 468,640 Valuation Allowance (151,798) (123,098) Net Deferred Tax Assets 587,580 345,542 Deferred Tax Liabilities: Property, Plant and Equipment (749,811) (649,917) Investment in Partnership (133,287) (85,882) Discount on Convertible Notes (15,864) (18,097) Operating Lease Right-of-Use Assets (14,985) (28,287) Advance Gas Royalties (1,842) (2,519) Gas Derivatives — (26,882) Other (392) (211) Total Deferred Tax Liabilities (916,181) (811,795) Net Deferred Tax Liability $ (328,601) $ (466,253) Deferred taxes are recorded for certain tax benefits, including net operating losses and tax credit carry-forwards, if management assesses the utilization of those assets to be more likely than not. A valuation allowance is required when it is not more likely than not that all or a portion of a deferred tax asset will be realized. All available evidence, both positive and negative, must be considered in determining the need for a valuation allowance. Positive evidence considered included financial earnings generated over the past three years for certain subsidiaries, reversals of financial to tax temporary differences and the implementation of and/or ability to employ various tax planning strategies. Negative evidence includes financial and tax losses generated in prior periods and the inability to achieve forecasted results for those periods. As of December 31, 2021, the Company has a deferred tax asset related to federal net operating losses of $209,731. The pre-2018 federal net operating losses will expire at various times between 2034 and 2037. Because of the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017 and the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27, 2020, the federal net operating losses (NOLs) generated in 2018 - 2021 do not expire but may only offset 80% of taxable income in any tax years beginning after 2020. The CARES Act, which, among other things; increased the adjusted taxable income limitation for the disallowance of interest expense from 30% to 50% and provided for refunds of any remaining alternative minimum tax (AMT) credits in 2020. The impact of other tax implications of the Act on the financial statements and related disclosures are immaterial. A valuation allowance on foreign tax credits of $39,404 and $43,194 has also been recorded at December 31, 2021 and 2020, respectively. The valuation allowance was decreased by $3,790 in 2021 due to the expiration of a portion of the credits. The foreign tax credits expire at various times between 2022 and 2024. CNX has, on an after federal tax basis, a deferred tax asset related to state operating losses of $128,592 with a related valuation allowance of $112,298 at December 31, 2021. The deferred tax asset related to state operating losses, on an after-tax adjusted basis, was $129,641 with a related valuation allowance of $79,198 at December 31, 2020. A review of positive and negative evidence regarding these state tax benefits concluded that the valuation allowances for various CNX subsidiaries was warranted. West Virginia net operating losses generated after 2017 do not expire but may only offset 80% of taxable income. Pre-2018 West Virginia and other state net operating losses expire at various times between 2022 and 2041. Management will continue to assess the potential for realized deferred tax assets based upon income forecast data and the feasibility of future tax planning strategies and may record adjustments to valuation allowances against deferred tax assets in future periods, as appropriate, that could materially impact net income. The following is a reconciliation, stated as a percentage of pretax income, of the United States statutory federal income tax rate to CNX's effective tax rate: For the Years Ended December 31, 2021 2020 2019 Amount Percent Amount Percent Amount Percent Statutory U.S. Federal Income Tax Rate $ (133,668) 21.0 % $ (126,595) 21.0 % $ 12,534 21.0 % Net Effect of State Income Taxes (36,300) 5.7 (32,336) 5.5 1,333 2.2 Non-Controlling Interest — — (11,556) 1.9 (23,662) (39.6) Uncertain Tax Positions 35,914 (5.6) 375 (0.1) — — Accrual to Tax Return Reconciliation (3) — 13 — 603 1.0 Effect of Equity Compensation 2,465 (0.4) 4,311 (0.7) 8,771 14.7 Effect of Change in State Valuation Allowance 33,100 (5.2) (2,004) 0.3 33,238 55.6 Effect of Change in Federal Valuation Allowance (4,400) 0.7 48 — (2,640) (4.4) Other Deferred Adjustments (4,401) 0.7 1,166 (0.2) (1,691) (2.8) Effect of State Apportionment Changes 22,458 (3.5) (1,450) 0.2 (3,842) (6.4) Effect of Federal Tax Credits (53,269) 8.3 (6,284) 1.0 2,881 4.8 Other 234 — 225 — 211 0.4 Income Tax (Benefit) Expense / Effective Rate $ (137,870) 21.7 % $ (174,087) 28.9 % $ 27,736 46.5 % The effective tax rate for the year ended December 31, 2021 was higher than the U.S. federal statutory rate primarily due to federal income tax credits and state taxes offset by uncertain tax positions, equity compensation, and the increase in certain state valuation allowances as a result of a higher-than-expected unrealized loss on commodity derivative instruments generated during 2021. The effective tax rate for the year ended December 31, 2020 was higher than the U.S. federal statutory rate primarily due to state taxes, equity compensation, and the decrease in certain state valuation allowances as a result of the Merger transaction with CNXM partially offset by the benefit from non-controlling interest. The effective tax rate for the year ended December 31, 2019 was higher than the U.S. federal statutory rate primarily due to state taxes, equity compensation, and the increase in certain state valuation allowances as a result of the higher than projected net operating loss generated in 2018 partially offset by the benefit from non-controlling interest. As a result of the Midstream Acquisition on January 3, 2018, the Company obtained a controlling interest in CNX Gathering LLC and, through CNX Gathering's ownership of the general partner, control over CNXM. The financial results for 2020 and 2019 reflect full consolidation of CNXM’s assets and liabilities. The effective tax rates for the years ended December 31, 2020 and 2019 reflect a $11,556 and $23,662 reduction in income tax expense, respectively, due to the non-controlling interest in CNXM’s earnings. In December 2019, the FASB issued ASU 2019-12 - Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. This ASU removes the following exceptions: (1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this ASU also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU were applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted ASU 2019-12 as of January 1, 2020. A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Years Ended December 31, 2021 2020 Balance at Beginning of Period $ 31,891 $ 31,516 Increase in Unrecognized Tax Benefits Resulting from Tax Positions Taken During Prior Periods 38,735 1,726 Reduction in Unrecognized Tax Benefits Because of the Lapse of the Applicable Statute of Limitations (2,821) (1,351) Balance at End of Period $ 67,805 $ 31,891 If these unrecognized tax benefits were recognized, $67,805 and $31,891 would affect CNX's effective income tax rate for 2021 and 2020, respectively. In 2021 and 2020, CNX recognized an increase in unrecognized tax benefits of $38,735 and $1,726, respectively, for tax benefits resulting from tax positions taken on our 2020 and 2019 federal tax returns for additional federal tax credits. CNX also recognized a reduction to unrecognized tax benefits in 2021 and 2020 of $2,821 and $1,351, respectively, due to the expiration of the statute of limitations from a position taken on a previously filed federal income tax return. CNX recognizes accrued interest related to unrecognized tax benefits in its interest expense. As of December 31, 2021 and 2020, the Company reported no accrued liability relating to interest in Other Liabilities in the Consolidated Balance Sheets. During the years ended December 31, 2021 and 2020, CNX paid no interest related to income tax deficiencies. CNX recognizes penalties accrued related to uncertain tax positions in its income tax expense. CNX had no accrued liabilities for tax penalties as of December 31, 2021 and 2020. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS: The reconciliation of changes in asset retirement obligations is as follows: December 31, 2021 2020 Balance, Beginning of Year $ 93,168 $ 68,454 Obligations Divested (124) (703) Accretion Expense 9,233 11,067 Obligations Incurred 3,237 2,806 Obligations Settled (9,501) (7,905) Revisions in Estimated Cash Flows — 19,449 Balance, End of Year $ 96,013 $ 93,168 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT: December 31, 2021 2020 Intangible Drilling Cost $ 5,247,800 $ 4,965,252 Gas Gathering Equipment 2,483,561 2,510,917 Proved Gas Properties 1,312,706 1,253,094 Gas Wells and Related Equipment 1,202,731 1,120,061 Unproved Gas Properties 730,400 725,705 Surface Land and Other Equipment 194,655 199,322 Other 190,249 189,645 Total Property, Plant and Equipment 11,362,102 10,963,996 Less: Accumulated Depreciation, Depletion and Amortization 4,372,619 3,938,451 Total Property, Plant and Equipment - Net $ 6,989,483 $ 7,025,545 Amounts below reflect properties where drilling operations have not yet commenced and therefore, were not being amortized for the years ended December 31, 2021 and 2020, respectively. These assets will be amortized using the units-of-production method and reclassified to proved gas properties when placed in service. December 31, 2021 2020 Unproved Gas Properties $ 730,400 $ 725,705 Advance Royalties 6,885 9,676 Total $ 737,285 $ 735,381 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: In December 2017, CNX Gas entered into a purchase agreement with Noble Energy, pursuant to which CNX Gas acquired Noble’s 50% membership interest in CNX Gathering (then named CONE Gathering LLC), for a cash purchase price of $305,000 (the “Midstream Acquisition”). Prior to the Midstream Acquisition, the Company accounted for its 50% interest in CNX Gathering as an equity method investment as the Company had the ability to exercise significant influence, but not control, over the operating and financial policies of the midstream operations. In conjunction with the Midstream Acquisition, the Company obtained a controlling interest in CNX Gathering and control over the Partnership. Accordingly, the Midstream Acquisition was accounted for as a business combination using the acquisition method of accounting pursuant to ASC Topic 805, Business Combinations, or ASC 805. ASC 805 requires that, in circumstances where a business combination is achieved in stages (or step acquisition), previously held equity interests are remeasured at fair value. The fair value assigned to the previously held equity interest in CNX Gathering and CNXM was $799,033 and was determined using the income approach, based on a discounted cash flow methodology. As part of the allocation of purchase price and in connection with the fair value of consideration transferred at closing on January 3, 2018, CNX recorded $796,359 of goodwill and $128,781 of other intangible assets which are comprised of customer relationships. Impairment of Goodwill: All goodwill is attributed to the Midstream reporting unit within the Shale segment. Goodwill is evaluated for impairment at least annually and whenever events or changes in circumstance indicate that the fair value of a reporting unit is less than its carrying amount. In connection with the evaluation of goodwill for impairment, CNX may first consider qualitative factors to assess whether there are indicators that it is more likely than not that the fair value of a reporting unit may not exceed its carrying amount. If after assessing such factors or circumstances, CNX determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then a quantitative assessment is not required. If CNX chooses to bypass the qualitative assessment, or if it chooses to perform a qualitative assessment but is unable to qualitatively conclude that no impairment has occurred, then CNX will perform a quantitative assessment. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recognized for the excess of the reporting unit's carrying value over its fair value. The Company uses a combination of the income approach (generally a discounted cash flow method) and market approach (which may include the guideline public company method and/or the guideline transaction method) to estimate the fair value of a reporting unit. During the first quarter of 2020, the Company identified indicators of impairment in the form of deteriorating macroeconomic conditions, and the decline in the observable market value of CNXM securities both in relation to the COVID-19 pandemic and the overall decline in the MLP market space. Management concluded that these factors presented indications that the fair value of the Midstream reporting unit was more likely than not below the reporting unit’s carrying value. CNX bypassed the qualitative assessment and performed a quantitative test that utilized a combination of the income and market approaches as described above to estimate the fair value of the Midstream reporting unit. As a result of this assessment, CNX concluded that the carrying value exceeded its estimated fair value, and a corresponding impairment of $473,045 was included in Impairment of Goodwill in the accompanying Consolidated Statements of Income. Any additional adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges. In estimating the fair value of the Midstream reporting unit, the Company used the income approach’s discounted cash flow method, which applies significant inputs not observable in the public market (Level 3), including estimates and assumptions related to the use of an appropriate discount rate, future throughput volumes, operating costs and capital spending, discounted to present value using an industry rate adjusted for company-specific risk, which management feels reflects the overall level of inherent risk of the reporting unit. These assumptions are affected by expectations about future market, industry and economic conditions. Cash flow projections were derived from board approved budgeted amounts, a seven-year operating forecast and an estimate of future cash flows. Subsequent cash flows were developed using growth or contraction rates that management believes are reasonably likely to occur. The Company used the market approach’s comparable company method. The comparable company method evaluates the value of a company using metrics of other businesses of similar size and industry. The estimates of future cash flows utilized in the impairment analysis described above were subjective in nature and are subject to impacts from business risks as described in “Item 1A. Risk Factors”. The fair value estimation process requires considerable judgment and determining the fair value is sensitive to changes in assumptions impacting management’s estimates of future financial results. Although CNX believes the estimates and assumptions used in estimating the fair value are reasonable and appropriate, different assumptions and estimates could materially impact the estimated fair value. Future results could differ from our current estimates and assumptions. Changes in the carrying amount of goodwill consist of the following activity: For the Years Ended December 31, 2021 2020 Carrying Amount, Beginning of Period $ 323,314 $ 796,359 Impairment — 473,045 Carrying Amount, End of Period $ 323,314 $ 323,314 Other Intangible Assets: The carrying amount and accumulated amortization of other intangible assets consist of the following: December 31, 2021 2020 Other Intangible Assets: Gross Amortizable Asset - Customer Relationships $ 109,752 $ 109,752 Less: Accumulated Amortization - Customer Relationships 26,209 19,657 Total Other Intangible Assets, net $ 83,543 $ 90,095 |
Revolving Credit Facilities
Revolving Credit Facilities | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt, Other Disclosures [Abstract] | |
Revolving Credit Facilities | REVOLVING CREDIT FACILITIES: CNX: CNX’s senior secured revolving credit facility (the “CNX Credit Facility”) was set to mature in April 2024, prior to its amendment and restatement in October 2021. Borrowings under the CNX Credit Facility were subject to borrowing base limitations based on the collateral value of CNX’s assets and were subject to regular semi-annual redeterminations. In November 2020, as part of the issuance of the $500,000 6.00% Senior Notes due January 2029 (See Note 12 - Long-Term Debt), both the lenders’ commitments and borrowing base under the CNX Credit Facility decreased to $1,775,000 from $1,900,000. In April 2021, as part of the semi-annual borrowing base redetermination, the lenders reaffirmed CNX’s $1,775,000 borrowing base. On October 6, 2021, CNX as borrower and certain of its subsidiaries (not including CNXM) as guarantor loan parties entered into a new Amended and Restated Credit Agreement for a senior secured revolving credit facility (the “CNX Credit Agreement”). The new CNX Credit Agreement replaced the prior CNX Credit Facility and remains subject to a semi-annual redetermination. The CNX Credit Agreement has a $2,000,000 borrowing base and $1,300,000 in elected commitments, including borrowings and letters of credit. The CNX Credit Facility matures on October 6, 2026, provided that if at any time on or after January 30, 2026, if any of the Company’s 2.25% Convertible Senior Notes due 2026 are outstanding and (a) availability under the CNX Credit Facility minus (b) the aggregate principal amount of all such outstanding Convertible Senior Notes is less than 20% of the aggregate commitments under the CNX Credit Facility (the first such date, the “Springing Maturity Date”), then the CNX Credit Facility will mature on the Springing Maturity Date. In addition to refinancing all outstanding amounts under the CNX Credit Facility, borrowings under the CNX Credit Agreement may be used by CNX for general corporate purposes. Under the terms of the CNX Credit Agreement, borrowings will bear interest at CNX’s option at either: • the highest of (i) PNC Bank, National Association’s prime rate, (ii) the federal funds open rate plus 0.50%, and (iii) the one-month LIBOR rate plus 1.0%, in each case, plus a margin ranging from 0.75% to 1.75%; or • the LIBOR rate plus a margin ranging from 1.75% to 2.75%. The availability under the CNX Credit Facility, including availability for letters of credit, is generally limited to a borrowing base, which is determined by the required number of lenders in good faith by calculating a loan value of the Company’s proved reserves. The CNX Credit Facility also requires that CNX maintain a maximum net leverage ratio of no greater than 3.50 to 1.00, which is calculated as the ratio of debt less cash on hand to consolidated EBITDA, measured quarterly. CNX must also maintain a minimum current ratio of no less than 1.00 to 1.00, which is calculated as the ratio of current assets, plus revolver availability, to current liabilities, excluding borrowings under the revolver, measured quarterly. The calculation of all of the ratios exclude CNXM. CNX was in compliance with all financial covenants as of December 31, 2021. At December 31, 2021, the CNX Credit Facility had $192,000 of borrowings outstanding and $184,131 of letters of credit outstanding, leaving $923,869 of unused capacity. At December 31, 2020, the CNX Credit Facility had $160,800 of borrowings outstanding and $185,272 of letters of credit outstanding, leaving $1,428,928 of unused capacity. CNX Midstream Partners LP (CNXM): CNXM's revolving credit facility was not impacted by the Merger (See Note 4 - Acquisitions and Dispositions). CNXM’s senior secured revolving credit facility (the “CNXM Credit Facility”) was set to mature in April 2024, prior to its amendment and restatement in October 2021. The lenders' commitments under the CNXM Credit Facility were $600,000, with an accordion feature that allowed CNXM to increase the available borrowings by up to an additional $250,000 under certain terms and conditions. The CNXM Credit Facility included the ability to issue letters of credit up to $100,000 in the aggregate. On October 6, 2021, CNXM as borrower and certain of its subsidiaries as guarantor loan parties entered into a new Amended and Restated Credit Agreement for a $600,000 senior secured revolving credit facility (the “CNXM Credit Agreement”) that matures on October 6, 2026. The CNXM Credit Agreement replaced the CNXM Credit Facility and is not subject to semi-annual redetermination. CNX is not a guarantor under the CNXM Credit Facility. In addition to refinancing all outstanding amounts under the prior CNXM Credit Facility, borrowings under the CNXM Credit Agreement may be used by CNXM for general corporate purposes. Interest on outstanding indebtedness under the CNXM Credit Agreement currently accrues, at CNXM’s option, at a rate based on either: • the highest of (i) PNC Bank, National Association’s prime rate, (ii) the federal funds open rate plus 0.50%, and (iii) the one-month LIBOR rate plus 1.0%, in each case, plus a margin ranging from 1.00% to 2.00%; or • the LIBOR rate plus a margin ranging from 2.00% to 3.00%. In addition, CNXM is obligated to maintain at the end of each fiscal quarter (x) a maximum net leverage ratio of no greater than between 5.00 to 1.00 ranging to no greater than 5.25 to 1.00 in certain circumstances; (y) a maximum secured leverage ratio of no greater than 3.25 to 1.00 and (z) a minimum interest coverage ratio of no less than 2.50 to 1.00; in each case as calculated in accordance with the terms and definitions determining such ratios contained in CNXM Credit Agreement. CNXM was in compliance with all financial covenants as of December 31, 2021. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES: December 31, 2021 2020 Royalties $ 152,498 $ 72,401 Accrued Interest 36,035 26,549 Short-Term Incentive Compensation 19,591 20,340 Deferred Revenue 18,984 10,986 Transportation Charges 15,808 15,969 Accrued Other Taxes 12,681 10,580 Accrued Payroll & Benefits 5,747 5,009 Litigation Contingency 1,200 2,025 Purchased Gas Payable 757 1,528 Other 15,435 23,144 Current Portion of Long-Term Liabilities: Asset Retirement Obligations 7,154 8,455 Salary Retirement 1,842 1,787 Total Other Accrued Liabilities $ 287,732 $ 198,773 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Other Disclosures [Abstract] | |
Long-Term Debt | LONG-TERM DEBT: December 31, 2021 2020 Senior Notes due March 2027 at 7.25% (Principal of $700,000 plus Unamortized Premium of $5,609 and $6,686, respectively) $ 705,609 $ 706,686 Senior Notes due January 2029 at 6.00%, Issued at Par Value 500,000 500,000 CNX Midstream Partners LP Senior Notes due April 2030 at 4.75% (Principal of $400,000 less Unamortized Discount of $4,808 at December 31, 2021)* 395,192 — Convertible Senior Notes due May 2026 at 2.25% (Principal of $345,000 less Unamortized Discount and Issuance Costs of $91,284 and $107,735, respectively) 253,716 237,265 CNX Revolving Credit Facility 192,000 160,800 CNX Midstream Partners LP Revolving Credit Facility* 185,000 291,000 CNX Midstream Partners LP Senior Notes due March 2026 at 6.50% (Principal of $400,000 less Unamortized Discount of $3,875 at December 31, 2020) — 396,125 Cardinal States Gathering Company Credit Facility maturing in March 2028 (Principal of $114,985 less Unamortized Discount of $1,126 at December 31, 2020) — 113,859 CSG Holdings II LLC Credit Facility maturing in March 2027 (Principal of $45,559 less Unamortized Discount of $441 at December 31, 2020) — 45,118 Less: Unamortized Debt Issuance Costs 17,396 26,852 2,214,121 2,424,001 Less: Current Portion — 22,574 Long-Term Debt $ 2,214,121 $ 2,401,427 *CNX is not a guarantor of CNXM's 4.75% Senior Notes due April 2030 or CNXM's Credit Facility. CNXM's Credit Facility and the CNXM Senior Notes due March 2026 were not impacted by the Merger (See Note 4 - Acquisitions and Dispositions). At December 31, 2021, annual undiscounted maturities of CNX and CNXM long-term debt during the next five years and thereafter are as follows: Year ended December 31, Amount 2022 $ — 2023 — 2024 — 2025 — 2026 722,000 Thereafter 1,600,000 Total Long-Term Debt Maturities $ 2,322,000 During the year ended December 31, 2021, CNXM completed a private offering of $400,000 aggregate principal amount of 4.75% CNXM Senior Notes due April 2030 (the “CNXM Senior Notes due April 2030”) less an unamortized bond discount of $5,000. The CNXM Senior Notes due April 2030, along with the related guarantees, were issued pursuant to an indenture dated September 22, 2021. The CNXM Senior Notes due April 2030 accrue interest from September 22, 2021 at a rate of 4.75% per year. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on April 15, 2022. The CNXM Senior Notes due April 2030 mature on April 15, 2030. The CNXM Senior Notes due April 2030 rank equally in right of payment to all of CNXM's existing and future indebtedness and senior to any subordinated indebtedness that CNXM may incur. CNX is not a guarantor of the CNXM Senior Notes due April 2030. During the year ended December 31, 2021, CNXM purchased and retired $400,000 aggregate principal amount of its outstanding 6.50% Senior Notes due March 2026. As part of this transaction, a loss of $25,727 was included in Loss (Gain) on Debt Extinguishment in the Consolidated Statements of Income. During the year ended December 31, 2021, CNX’s wholly owned subsidiary Cardinal States Gathering Company LLC (“Cardinal States”) repaid in full the outstanding principal of $107,705 of its non-revolving credit facility and terminated the facility. As part of this transaction, a loss of $5,763 was included in Loss (Gain) on Debt Extinguishment in the Consolidated Statements of Income. Additionally, during the year ended December 31, 2021, CNX’s wholly owned subsidiary CSG Holdings II LLC (“CSG Holdings”) repaid in full the outstanding principal of $39,726 on its non-revolving credit facility and terminated the facility. As part of this transaction, a loss of $2,247 was included in Loss (Gain) on Debt Extinguishment in the Consolidated Statements of Income. During the year ended December 31, 2020, CNX purchased and retired the remaining $894,307 of its outstanding 5.875% Senior Notes due April 2022. As part of this transaction, a gain of $10,101 was included in Loss (Gain) on Debt Extinguishment in the Consolidated Statements of Income. During the year ended December 31, 2020, CNX completed a private offering of $500,000 aggregate principal amount of 6.00% Senior Notes due January 2029 (the “Senior Notes due January 2029”). The Senior Notes due January 2029, along with the related guarantees, were issued pursuant to an indenture, dated November 30, 2020, among the Company, the subsidiary guarantors party thereto and UMB Bank, N.A., as trustee. The Senior Notes due January 2029 accrue interest from November 30, 2020 at a rate of 6.00% per year. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning July 15, 2021. The Senior Notes due January 2029 mature on January 15, 2029, subject to adjustment upon the occurrence of specified events. The Senior Notes due January 2029 rank equally in right of payment with all of the Company’s existing and future senior indebtedness and senior to any subordinated indebtedness that the Company may incur. The Senior Notes due January 2029 are guaranteed by most of CNX's subsidiaries but does not include CNXM (or its subsidiaries or general partner). During the year ended December 31, 2020, CNX completed a private offering of $200,000 of 7.25% Senior Notes due March 2027 (the “Senior Notes due March 2027”) plus $7,000 of unamortized bond premium at a price of 103.5% of par with an effective yield of 6.34%. The Senior Notes due March 2027, along with the related guarantees, were issued pursuant to an indenture, dated March 14, 2019. The Senior Notes due March 2027 accrue interest from September 14, 2020 at a rate of 7.25% per year. Interest is payable semi-annually in arrears on March 14 and September 14 of each year, beginning March 14, 2021. The Senior Notes due March 2027 mature on March 14, 2027. The Senior Notes due March 2027 rank equally in right of payment with all of the Company’s existing and future senior indebtedness and senior to any subordinated indebtedness that the Company may incur. The Senior Notes due March 2027 are guaranteed by most of CNX's subsidiaries but does not include CNXM (or its subsidiaries or general partner). In April 2020, CNX issued $345,000 in aggregate principal amount of 2.25% convertible senior notes due May 2026 (the “Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including $45,000 aggregate principal amount of Convertible Notes issued pursuant to the exercise in full of the initial purchasers’ option to purchase additional Convertible Notes. The Convertible Notes are senior, unsecured obligations of the Company. The Convertible Notes bear interest at a fixed rate of 2.25% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2020. Proceeds from the issuance of the Convertible Notes totaled $334,650, net of initial purchaser discounts and issuance costs. The Convertible Notes are guaranteed by most of CNX's subsidiaries but does not include CNXM (or its subsidiaries or general partner). The initial conversion rate is 77.8816 shares of CNX's common stock per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $12.84 per share, subject to adjustment upon the occurrence of specified events. Based on the closing stock price of CNX common stock of $13.75 on December 31, 2021, the if-converted value of the Convertible Notes exceeded the principal amount by $98,341. The Convertible Notes will mature on May 1, 2026, unless earlier repurchased, redeemed or converted. Before February 1, 2026, note holders will have the right to convert their Convertible Notes only upon the occurrence of the following events: • during any calendar quarter (and only during such calendar quarter) commencing after June 30, 2020, if the Last Reported Sale Price per share of Common Stock exceeds one hundred and thirty percent (130%) of the Conversion Price for each of at least twenty (20) Trading Days (whether or not consecutive) during the thirty (30) consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter. • during the five (5) consecutive Business Days immediately after any ten (10) consecutive trading day period (such ten (10) consecutive Trading Day period, the “Measurement Period”) if the trading Price per $1,000 principal amount of Notes, as determined following a request by a Holder in accordance with the procedures set forth below, for each trading day of the Measurement Period was less than ninety eight percent (98%) of the product of the last reported sale price per share of common stock on such trading day and the conversion rate on such trading day. • if CNX calls any or all of the Convertible Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events as set forth in the indenture governing the Convertible Notes. From and after February 1, 2026, note holders may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture governing the Convertible Notes. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the Convertible Notes. In addition, following certain corporate events, as described in the indenture governing the Convertible Notes, that occur prior to the maturity date, the Company will increase the conversion rate, in certain circumstances, for a holder who elects to convert its Convertible Notes in connection with such a corporate event. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. The Company’s current intent is to settle the principal amount of the Convertible Notes in cash upon conversion. If certain corporate events that constitute a “Fundamental Change” (as defined in the indenture governing the Convertible Notes) occur, then noteholders may require the Company to repurchase their Convertible Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s common stock. During the year ended December 31, 2021, the conditions allowing holders of the Convertible Notes to exercise their conversion right were not met and as of December 31, 2021, the Convertible Notes were not convertible. The Convertible Notes are therefore classified as long-term debt at December 31, 2021. In accounting for the transaction, the Convertible Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The fair value was based on market data available for publicly traded, senior, unsecured corporate bonds with similar maturity, which represent Level 2 observable inputs. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the principal value of the Convertible Notes and was recorded in Capital in Excess of Par Value in the Consolidated Statement of Stockholders Equity and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Convertible Notes over the liability component and the debt issuance costs are amortized to interest expense over the contractual term of the Convertible Notes using the effective interest method. In accounting for the debt issuance costs of $10,350 related to the Convertible Notes, the Company allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds of the Convertible Notes. Issuance costs attributable to the liability component were $7,024 and will be amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. Issuance costs attributable to the equity component were $3,326 and were netted with the equity component in Capital in Excess of Par Value in the Consolidated Statement of Stockholders Equity and are not subject to amortization. The net carrying amount of the liability and equity components of the Convertible Notes was as follows: December 31, 2021 2020 Liability Component: Principal $ 345,000 $ 345,000 Unamortized Discount (85,950) (101,367) Unamortized Issuance Costs (5,334) (6,368) Net Carrying Amount $ 253,716 $ 237,265 Equity Component, net of Purchase Discounts and Issuance Costs $ 78,284 $ 78,317 Interest expense related to the Convertible Notes is as follows: For the Years Ended December 31, 2021 2020 Contractual Interest Expense $ 7,762 $ 5,175 Amortization of Debt Discount 15,417 9,516 Amortization of Issuance Costs 1,034 655 Total Interest Expense $ 24,213 $ 15,346 In connection with the offering of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Calls”). The Capped Calls each have an initial strike price of $12.84 per share, subject to certain adjustments, which correspond to the initial conversion price of the Convertible Notes. The Capped Calls have an initial cap price of $18.19 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the Convertible Notes, and are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap, based on the cap price of the Capped Call Transactions. The conditions that cause adjustments to the initial strike price of the Capped Calls mirror the conditions that result in corresponding adjustments for the Convertible Notes. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Convertible Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $35,673 incurred in connection with the Capped Calls was recorded as a reduction to Capital in Excess of Par Value. During the year ended December 31, 2020, CNX's wholly-owned subsidiary Cardinal States entered into a $125,000 non-revolving credit facility agreement (the “Cardinal States Facility”). The Cardinal States Facility was set to mature in 2028, and was secured by substantially all of the Cardinal States assets, required a minimum level of hedging of the variable interest rate exposure and was non-recourse to CNX. The Cardinal States Facility was repaid in full and terminated during the year ended December 31, 2021 per above. Additionally, during the year ended December 31, 2020, CNX's wholly-owned subsidiary CSG Holdings entered into a $50,000 non-revolving credit facility agreement (the “CSG Holdings Facility”). The CSG Holdings Facility was set to mature in 2027. The facility was secured by substantially all of the CSG Holding assets, required a minimum level of hedging of the variable interest rate exposure and was non-recourse to CNX. The CSG Holdings Facility was repaid in full and terminated during the year ended December 31, 2021 per above. During the year ended December 31, 2019, CNX completed a private offering of $500,000 of 7.25% Senior Notes due March 2027. The notes are guaranteed by most of CNX's subsidiaries but do not include CNXM (or its subsidiaries or general partner). During the year ended December 31, 2019, CNX purchased and retired $400,000 of its outstanding 5.875% Senior Notes due April 2022. As part of this transaction, a loss of $7,614 was included in Loss (Gain) on Debt Extinguishment in the Consolidated Statements of Income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES: CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class. On December 20, 2021, CNX entered into a new lease for additional corporate headquarters space that is expected to result in an ROU asset and lease obligation of approximately $10,052 when the lease commences in May 2022. The components of lease cost were as follows: For the Years Ended December 31, 2021 2020 2019 Operating Lease Cost $ 60,364 $ 74,703 $ 73,809 Finance Lease Cost: Amortization of Right-of-Use Assets 1,577 4,959 5,242 Interest on Lease Liabilities 123 739 1,241 Short-term Lease Cost 8,589 3,252 5,547 Variable Lease Cost* 7,100 9,634 17,337 Total Lease Cost $ 77,753 $ 93,287 $ 103,176 *Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost. Amounts recognized in the Consolidated Balance Sheets are as follows: December 31, 2021 2020 Operating Leases: Operating Lease Right-of-Use Asset $ 56,022 $ 108,683 Current Portion of Operating Lease Obligations $ 22,940 $ 52,575 Operating Lease Obligations 33,672 53,235 Total Operating Lease Liabilities $ 56,612 $ 105,810 Finance Leases: Property, Plant and Equipment $ 5,613 $ 72,653 Less—Accumulated Depreciation, Depletion and Amortization 3,840 67,508 Property, Plant and Equipment—Net $ 1,773 $ 5,145 Current Portion of Finance Lease Obligations $ 555 $ 6,876 Finance Lease Obligations 1,218 1,057 Total Finance Lease Liabilities $ 1,773 $ 7,933 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2021 2020 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 56,966 $ 62,610 $ 66,827 Operating Cash Flows for Finance Leases $ 123 $ 739 $ 1,241 Financing Cash Flows for Finance Leases $ 2,785 $ 7,155 $ 7,149 Right-of-Use Assets Obtained in Exchange for Lease Obligations: Operating Leases $ 4,010 $ 4,027 $ 15,347 Finance Leases $ 772 $ 257 $ 1,846 Maturities of lease liabilities are as follows: Operating Finance Leases Leases Year Ended December 31, 2022 $ 25,008 $ 585 2023 5,453 611 2024 5,433 324 2025 4,824 209 2026 4,722 148 Thereafter 21,275 2 Total Lease Payments 66,715 1,879 Less: Interest 10,103 106 Present Value of Lease Liabilities $ 56,612 $ 1,773 Lease terms and discount rates are as follows: For the Years Ended December 31, 2021 2020 2019 Weighted Average Remaining Lease Term (years): Operating Leases 6.20 4.68 4.39 Finance Leases 3.56 1.37 2.16 Weighted Average Discount Rate: Operating Leases 4.84 % 4.40 % 4.96 % Finance Leases 1.72 % 6.33 % 6.92 % |
Leases | LEASES: CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class. On December 20, 2021, CNX entered into a new lease for additional corporate headquarters space that is expected to result in an ROU asset and lease obligation of approximately $10,052 when the lease commences in May 2022. The components of lease cost were as follows: For the Years Ended December 31, 2021 2020 2019 Operating Lease Cost $ 60,364 $ 74,703 $ 73,809 Finance Lease Cost: Amortization of Right-of-Use Assets 1,577 4,959 5,242 Interest on Lease Liabilities 123 739 1,241 Short-term Lease Cost 8,589 3,252 5,547 Variable Lease Cost* 7,100 9,634 17,337 Total Lease Cost $ 77,753 $ 93,287 $ 103,176 *Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost. Amounts recognized in the Consolidated Balance Sheets are as follows: December 31, 2021 2020 Operating Leases: Operating Lease Right-of-Use Asset $ 56,022 $ 108,683 Current Portion of Operating Lease Obligations $ 22,940 $ 52,575 Operating Lease Obligations 33,672 53,235 Total Operating Lease Liabilities $ 56,612 $ 105,810 Finance Leases: Property, Plant and Equipment $ 5,613 $ 72,653 Less—Accumulated Depreciation, Depletion and Amortization 3,840 67,508 Property, Plant and Equipment—Net $ 1,773 $ 5,145 Current Portion of Finance Lease Obligations $ 555 $ 6,876 Finance Lease Obligations 1,218 1,057 Total Finance Lease Liabilities $ 1,773 $ 7,933 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2021 2020 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 56,966 $ 62,610 $ 66,827 Operating Cash Flows for Finance Leases $ 123 $ 739 $ 1,241 Financing Cash Flows for Finance Leases $ 2,785 $ 7,155 $ 7,149 Right-of-Use Assets Obtained in Exchange for Lease Obligations: Operating Leases $ 4,010 $ 4,027 $ 15,347 Finance Leases $ 772 $ 257 $ 1,846 Maturities of lease liabilities are as follows: Operating Finance Leases Leases Year Ended December 31, 2022 $ 25,008 $ 585 2023 5,453 611 2024 5,433 324 2025 4,824 209 2026 4,722 148 Thereafter 21,275 2 Total Lease Payments 66,715 1,879 Less: Interest 10,103 106 Present Value of Lease Liabilities $ 56,612 $ 1,773 Lease terms and discount rates are as follows: For the Years Ended December 31, 2021 2020 2019 Weighted Average Remaining Lease Term (years): Operating Leases 6.20 4.68 4.39 Finance Leases 3.56 1.37 2.16 Weighted Average Discount Rate: Operating Leases 4.84 % 4.40 % 4.96 % Finance Leases 1.72 % 6.33 % 6.92 % |
Pension
Pension | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension | PENSION: The benefits for the Defined Contribution Restoration Plan were frozen effective July 1, 2018. Employees hired after this date are not eligible for this benefit plan. In addition, current participants receive no further compensation credits after that date, with the last award being 2017. Annual interest credits will continue to be made in accordance with the terms of the plan. The current portion of the pension obligation is included in Other Accrued Liabilities and the noncurrent portion is included in Other Liabilities in the Consolidated Balance Sheets. The reconciliation of changes in the benefit obligation, plan assets and funded status of the pension benefits is as follows: December 31, 2021 2020 Change in Benefit Obligation: Benefit Obligation at Beginning of Period $ 44,076 $ 40,196 Service Cost — 247 Interest Cost 855 1,179 Actuarial (Gain) Loss (161) 4,098 Benefits and Other Payments (1,780) (1,644) Benefit Obligation at End of Period $ 42,990 $ 44,076 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Period $ — $ — Company Contributions 1,780 1,644 Benefits and Other Payments (1,780) (1,644) Fair Value of Plan Assets at End of Period $ — $ — Funded Status: Current Liabilities $ (1,842) $ (1,787) Noncurrent Liabilities (41,148) (42,289) Net Obligation Recognized $ (42,990) $ (44,076) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net Actuarial Loss $ 18,401 $ 19,075 Prior Service Cost 1,284 1,506 Total 19,685 20,581 Less: Tax Benefit 5,162 5,397 Net Amount Recognized $ 14,523 $ 15,184 The components of the net periodic benefit cost are as follows: For the Years Ended December 31, 2021 2020 2019 Components of Net Periodic Benefit Cost: Service Cost $ — $ 247 $ 209 Interest Cost 855 1,179 1,338 Amortization of Prior Service Cost (Credit) 222 221 (17) Recognized Net Actuarial Loss 513 383 242 Net Periodic Benefit Cost $ 1,590 $ 2,030 $ 1,772 CNX utilizes a corridor approach to amortize actuarial gains and losses that have been accumulated under the pension plan. Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation (PBO) or the market-related value of plan assets are amortized over the expected remaining future lifetime of all plan participants for the pension plan. The following table provides information related to the pension plan with an accumulated benefit obligation in excess of plan assets: As of December 31, 2021 2020 Projected Benefit Obligation $ 42,990 $ 44,076 Accumulated Benefit Obligation $ 42,990 $ 43,886 Fair Value of Plan Assets $ — $ — Assumptions: The weighted-average assumptions used to determine benefit obligations are as follows: As of December 31, 2021 2020 Discount Rate 2.84 % 2.47 % Rate of Compensation Increase — % — % Interest Credited Rate 2.64 % 2.26 % The discount rates are determined using a Company-specific yield curve model (above-mean) developed with the assistance of an external actuary. The Company-specific yield curve models (above-mean) use a subset of the expanded bond universe to determine the Company-specific discount rate. Bonds used in the yield curve are rated AA by Moody's or Standard & Poor's as of the measurement date. The yield curve models parallel the plans' projected cash flows, and the underlying cash flows of the bonds included in the models exceed the cash flows needed to satisfy the Company plans. The weighted-average assumptions used to determine net periodic benefit cost are as follows: For the Years ended December 31, 2021 2020 2019 Discount Rate 2.47 % 3.36 % 4.37 % Rate of Compensation Increase — % — % 3.63 % Interest Credited Rate 2.71 % 2.47 % 3.39 % Cash Flows: The following benefit payments, which reflect expected future service, are expected to be paid: Pension Year ended December 31, Benefits 2022 $ 1,842 2023 $ 1,916 2024 $ 1,986 2025 $ 2,066 2026 $ 2,120 Year 2027-2031 $ 11,802 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION:CNX's Equity Incentive Plan provides for grants of stock-based awards to key employees and to non-employee directors. Amendments to the Equity Incentive Plan have been adopted and approved by the Board of Directors and the Company's shareholders since the commencement of the Equity Incentive Plan. Most recently, in May 2020 the Company's Shareholders adopted and approved a 10,775,000 increase to the total number of shares available for issuance. At December 31, 2021, 12,140,450 shares of common stock remained available for grant under the plan. The Equity Incentive Plan provides that the aggregate number of shares available for issuance will be reduced by one share for each share relating to stock options and by 1.62 for each share relating to Performance Share Units (PSUs) or Restricted Stock Units (RSUs). No award of stock options may be exercised under the Equity Incentive Plan after the tenth anniversary of the grant date of the award. For those shares expected to vest, CNX recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term. Options and RSUs vest over a three-year term. PSUs granted in 2017-2019 vest over a five-year term and PSUs granted in 2020-2021 vest over a three-year term subject to performance conditions. If an employee leaves the Company, all unvested shares are forfeited. CNX recognizes forfeitures as they occur. The vesting of all awards will accelerate in the event of death and disability and may accelerate upon a change in control of CNX. Pursuant to the terms of the change in control severance agreements of certain employees and CNX officers, outstanding equity awards held by such employees vest upon a stockholder (or stockholder group) becoming the beneficial owner of more than 25% of the Company's outstanding common stock. During the year ended December 31, 2019, Southeastern Asset Management, Inc. and its affiliates (“SEAM”) acquired shares of CNX's common stock in the open market which resulted in SEAM's aggregate share ownership exceeding more than 25% of CNX's common stock outstanding. This transaction, as such, constituted a change in control event under the severance agreements, resulting in the accelerated vesting of 473,126 restricted stock units and 903,100 performance share units held by the aforementioned employees that were issued prior to 2019. Those affected employees and officers each consented to waive the change in control vesting provision included in the change in control severance agreements with respect to their restricted stock unit and performance share unit awards that were issued during 2019. The accelerated vesting resulted in $19,654 of additional long-term equity-based compensation expense for the year ended December 31, 2019, and is included in Selling, General and Administrative Costs in the Consolidated Statements of Income. The performance share unit awards that vested continue to be subject to the attainment of performance goals as determined by the Compensation Committee of CNX's Board of Directors after the end of the applicable performance period. The total stock-based compensation expense recognized relating to CNX shares during the years ended December 31, 2021, 2020 and 2019 was $16,560, $12,897 and $36,545, respectively. The related deferred tax benefit totaled $4,409, $2,134, $3,955, respectively. As of December 31, 2021, CNX has $13,584 of unrecognized compensation cost related to all non-vested stock-based compensation awards, which is expected to be recognized over a weighted-average period of 1.43 years. When stock options are exercised, and restricted and performance stock unit awards become vested, the issuances are made from CNX's common stock shares. Pursuant to the Merger (See Note 4 - Acquisitions and Dispositions for more information), all outstanding phantom units previously granted under the CNXM long-term incentive plan were converted into the right to receive 0.88 shares of common stock of CNX. As such, all outstanding phantom units were converted, effective as of the closing of the Merger, into CNX restricted stock units. Each CNX restricted stock unit will be subject to the same vesting, forfeiture and other terms and conditions applicable to the converted CNXM phantom units. Under Accounting Standards Codification Topic 718, Compensation - Stock Compensation, it was determined that there was no additional compensation cost to record as the conversion of awards did not result in incremental fair value. Stock Options: CNX examined its historical pattern of option exercises in an effort to determine if there were any discernible activity patterns based on certain employee populations. From this analysis, CNX identified two distinct employee populations and used the Black-Scholes option pricing model to value the options for each of the employee populations. The expected term computation presented in the table below is based upon a weighted average of the historical exercise patterns and post-vesting termination behavior of the two populations. The risk-free interest rate was determined for each vesting tranche of an award based upon the calculated yield on U.S. Treasury obligations for the expected term of the award. A combination of historical and implied volatility is used to determine expected volatility and future stock price trends. There were no options granted during the year ended December 31, 2021. The total fair value of options granted during the years ended December 31, 2020 and 2019 was $1,066 and $50, respectively, based on the following assumptions and weighted average fair values: December 31, 2020 2019 Weighted Average Fair Value of Grants $ 3.56 $ 3.48 Risk-free Interest Rate 1.61 % 2.13 % Expected Dividend Yield — % — % Expected Forfeiture Rate — % — % Expected Volatility 55.33 % 43.60 % Expected Term in Years 5.11 6.50 A summary of the status of stock options granted is presented below: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term (in Value (in Shares Price years) thousands) Outstanding at December 31, 2020 4,200,509 $ 15.32 Granted — $ — Exercised (704,105) $ 7.28 Forfeited (3,410) $ 10.53 Expired (502,900) $ 42.07 Outstanding at December 31, 2021 2,990,094 $ 12.72 3.79 $ 12,975 Exercisable at December 31, 2021 2,814,288 $ 12.86 3.53 $ 12,402 At December 31, 2021, there were 2,538,950 employee stock options outstanding under the Equity Incentive Plan. Non-employee director stock options vest one year after the grant date. There are 451,144 stock options outstanding under these grants. The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between CNX's closing stock price on the last trading day of the year ended December 31, 2021 and the option's exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2021. This amount varies based on the fair market value of CNX's stock. The total intrinsic value of options exercised for the years ended December 31, 2021, 2020 and 2019 was $5,027, $1,263, and $175, respectively. Cash received from option exercises for the years ended December 31, 2021, 2020 and 2019 was $5,087, $2,052 and $546, respectively. The tax impact from option exercises totaled $960, $328 and $46 for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock Units: Under the Equity Incentive Plan, CNX grants certain employees and non-employee directors RSU awards, which entitle the holder to receive shares of common stock as the award vests. Non-employee director RSUs vest at the end of one year. Compensation expense is recognized over the vesting period of the units, described above. The total fair value of RSUs granted during the years ended December 31, 2021, 2020 and 2019 was $12,603, $10,619 and $10,844, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2021, 2020 and 2019 was $9,249, $4,798 and $10,391, respectively. The following table represents the nonvested restricted stock units and their corresponding fair value (based upon the closing share price) at the date of grant: Number of Weighted Average Shares Grant Date Fair Value Nonvested at December 31, 2020 1,871,127 $10.10 Granted 1,110,713 $11.35 Vested (866,260) $10.68 Forfeited (77,603) $9.68 Nonvested at December 31, 2021 2,037,977 $10.55 Performance Share Units: Under the Equity Incentive Plan, CNX grants certain employees performance share unit awards, which entitle the holder to shares of common stock subject to the achievement of certain market and performance goals. Compensation expense is recognized over the performance measurement period of the units in accordance with the provisions of the Stock Compensation Topic of the FASB Accounting Standards Codification for awards with market and performance vesting conditions. The total fair value of performance share units granted during the years ended December 31, 2021, 2020 and 2019 was $7,634, $3,826 and $6,741, respectively. The total fair value of performance share units vested during the years ended December 31, 2021, 2020 and 2019 was $6,206, $1,926 and $4,668, respectively. The following table represents the nonvested performance share units and their corresponding fair value (based upon the Monte Carlo Methodology for market based awards and the stock price on the date of grant for performance based awards) on the date of grant: Number of Weighted Average Shares Grant Date Fair Value Nonvested at December 31, 2020 1,767,438 $13.85 Granted 862,949 $8.85 Issued 111,231 $20.79 Vested (291,653) $21.28 Forfeited (129,942) $15.68 Nonvested at December 31, 2021 2,320,023 $11.20 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION: The following are non-cash transactions that impact the investing and financing activities of CNX. As of December 31, 2021, 2020 and 2019, CNX purchased goods and services related to capital projects in the amount of $35,592, $30,982 and $43,982, respectively, which are included in accounts payable. The following table shows cash paid (received): For the Years Ended December 31, 2021 2020 2019 Interest (Net of Amounts Capitalized) $ 123,466 $ 141,992 $ 143,111 Income Taxes $ — $ (118,125) $ (138,409) |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk and Major Customers | CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS: CNX markets natural gas primarily to gas wholesalers in the United States. Concentration of credit risk is summarized below: December 31, 2021 2020 Gas Wholesalers $ 288,918 $ 133,253 NGL, Condensate & Processing Facilities 32,006 7,008 Other 9,282 5,752 Allowance for Credit Losses (84) (84) Total Accounts Receivable Trade $ 330,122 $ 145,929 As of December 31, 2021, receivables of $38,814 and $36,595 due from Direct Energy Business Marketing LLC and Citadel Energy Marketing LLC, respectively, were included in the Gas Wholesalers balance above. As of December 31, 2020, a receivable of $19,995 due from Direct Energy Business Marketing LLC was included. No other customers made up more than 10% of the total balances. During the year ended December 31, 2021, sales to Citadel Energy Marketing LLC were $334,407 and sales to Direct Energy Business Marketing LLC were $235,760, each of which comprised over 10% of the Company's revenue from contracts with external customers for the period. During the year ended December 31, 2020, sales to Direct Energy Business Marketing LLC were $167,390, which comprised over 10% of the Company's revenue from contracts with external customers for the period. During the year ended December 31, 2019, sales to Direct Energy Business Marketing LLC were $214,980 and sales to NJR Energy Services Company were $147,540, each of which comprised over 10% of the Company's revenue from contracts with external customers for the period. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS: CNX determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources (including NYMEX forward curves, LIBOR-based discount rates and basis forward curves), while unobservable inputs reflect the Company's own assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs, including NYMEX forward curves, LIBOR-based discount rates and basis forward curves. Level 3 - Unobservable inputs significant to the fair value measurement supported by little or no market activity. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The financial instrument measured at fair value on a recurring basis is summarized below: Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Gas Derivatives $ — $ (976,170) $ — $ — $ 117,545 $ — Interest Rate Swaps $ — $ (5,786) $ — $ — $ (14,270) $ — The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Cash and Cash Equivalents (Excluding Restricted Cash) $ 3,565 $ 3,565 $ 15,617 $ 15,617 Restricted Cash* $ — $ — 5,982 5,982 Long-Term Debt (Excluding Debt Issuance Costs) $ 2,231,517 $ 2,483,019 $ 2,450,853 $ 2,638,251 *The December 31, 2020 restricted cash balance includes $735 and $5,247 located in current assets and other non-current assets, respectively, in the Consolidated Balance Sheets. Cash and cash equivalents and restricted cash represent highly-liquid instruments and constitute Level 1 fair value measurements. Certain of the Company’s debt is actively traded on a public market and, as a result, constitute Level 1 fair value measurements. The portion of the Company’s debt obligations that is not actively traded is valued through reference to the applicable underlying benchmark rate and, as a result, constitute Level 2 fair value measurements. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 are 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 interest rate swaps related to $175,000 of borrowings under the Cardinal States Facility and CSG Holdings Facility (See Note 12 - Long-Term Debt). In order to manage exposure to interest rate volatility, each respective entity entered into an interest rate swap for the full outstanding principal amounts inclusive of a put option at 25 basis points. The underlying notional for each swap and put option reduced over time based upon the expected amortization profile for each respective credit facility. In addition, CSG Holdings entered into a call option commencing March 31, 2023. In August 2021, these swaps were terminated in conjunction with the repayment and termination of both the Cardinal States Facility and the CSG Holdings Facility (See Note 12 - Long-Term Debt). In June 2019, CNX entered into an interest rate swap agreement related to $160,000 of borrowings under CNX’s Credit Facility (See Note 10 - Revolving Credit Facilities) which has the economic effect of modifying the variable-interest obligation into a fixed-interest obligation over a three-year period. In March 2020, this swap was terminated and replaced via a new interest rate swap, effective April 3, 2020, into a new four-year interest rate swap inclusive of a put option at zero basis points. Also executed in March 2020 was a new four-year $250,000 interest rate swap 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 commodity price volatility. Typically, CNX “sells” swaps under which it receives a fixed price from counterparties and pays a floating market price. In order to enhance production flexibility, during the first quarter of 2021, CNX purchased, rather than sold, financial swaps for the period April through October of 2021 under which CNX will pay a fixed price to and receive a floating price from its hedge counterparties. Swaps purchased have the effect of reducing total hedged volumes for the period of the swap. Natural gas 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 counterparty master agreements, if CNX's obligations with any 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: December 31, Forecasted to 2021 2020 Settle Through Natural Gas Commodity Swaps (Bcf) 1,686.1 1,256.9 2027 Natural Gas Basis Swaps (Bcf) 1,233.3 1,294.1 2027 Interest Rate Swaps $ 410,000 $ 569,972 2024 The gross fair value of CNX's derivative instruments was as follows: December 31, 2021 2020 Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 92 $ 53,668 Basis Only Swaps 94,682 30,848 Interest Rate Swaps 228 141 Total Current Assets $ 95,002 $ 84,657 Other Non-Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 12,419 $ 134,661 Basis Only Swaps 119,077 52,903 Interest Rate Swaps 498 673 Total Other Non-Current Assets $ 131,994 $ 188,237 Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 505,460 $ 23,506 Basis Only Swaps 13,206 14,491 Interest Rate Swaps 2,932 4,332 Total Current Liabilities $ 521,598 $ 42,329 Non-Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 642,442 $ 59,388 Basis Only Swaps 41,332 57,150 Interest Rate Swaps 3,580 10,752 Total Non-Current Liabilities $ 687,354 $ 127,290 The effect of commodity derivative instruments on the Company's Consolidated Statements of Income was as follows: For the Years Ended December 31, 2021 2020 2019 Cash (Paid) Received in Settlement of Commodity Derivative Instruments: Natural Gas: Commodity Swaps $ (596,619) $ 390,547 $ 82,899 Basis Swaps 57,603 70,670 (13,119) Total Cash (Paid) Received in Settlement of Commodity Derivative Instruments (539,016) 461,217 69,780 Unrealized (Loss) Gain on Commodity Derivative Instruments: Natural Gas: Commodity Swaps (1,240,827) (407,308) 406,472 Basis Swaps 147,110 119,073 (100,147) Total Unrealized (Loss) Gain on Commodity Derivative Instruments (1,093,717) (288,235) 306,325 (Loss) Gain on Commodity Derivative Instruments: Natural Gas: Commodity Swaps (1,837,446) (16,761) 489,371 Basis Swaps 204,713 189,743 (113,266) Total (Loss) Gain on Commodity Derivative Instruments $ (1,632,733) $ 172,982 $ 376,105 The effect of interest rate swaps on Interest Expense in the Company's Consolidated Statements of Income was as follows: For the Years Ended December 31, 2021 2020 2019 Cash (Paid) Received in Settlement of Interest Rate Swaps $ (5,574) $ (3,141) $ 223 Unrealized Gain (Loss) on Interest Rate Swaps 8,485 (13,051) (1,219) Gain (Loss) on Interest Rate Swaps $ 2,911 $ (16,192) $ (996) Cash Received in Settlement of Commodity Derivative Instruments for the year ended December 31, 2020 includes $54,982 related to the monetization of certain NYMEX commodity swaps. The monetization resulted from reducing the contract swap prices of certain 2022, 2023 and 2024 NYMEX natural gas swap contracts. The notional quantities of the contracts were not changed by this monetization . Net proceeds received from the monetization are classified as operating cash flows in the Consolidated Statements of Cash Flows. 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. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES: CNX and its subsidiaries are subject to various lawsuits and claims with respect to such matters as personal injury, royalty accounting, damage to property, climate change, governmental regulations including environmental violations and remediation, employment and contract disputes and other claims and actions arising out of the normal course of business. CNX accrues the estimated loss for these lawsuits and claims when the loss is probable and can be estimated. The Company's current estimated accruals related to these pending claims, individually and in the aggregate, are immaterial to the financial position, results of operations or cash flows of CNX. It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to the financial position, results of operations or cash flows of CNX; however, such amounts cannot be reasonably estimated. The 1992 Coal Industry Retiree Health Benefit Act (the “Coal Act”), in Section 9711, requires coal companies that were providing health benefits to United Mine Workers of America (UMWA) retirees as of February 1993 to continue providing health benefits to such individuals, in substantially the same coverages, for as long as the last signatory operator remains in business. Section 9711 also requires any “related person” to be joint and severally liable for the provision of these health benefits. On May 1, 2020, the court in the Murray Energy Corporation (“Murray”) bankruptcy proceedings approved a settlement agreement between Murray and the UMWA that transferred to the UMWA 1992 Benefit Plan the Coal Act liabilities for retirees in Murray’s Section 9711 plan. The retirees transferred by Murray to the 1992 Benefit Plan include approximately 2,159 retirees allegedly traced to the December 2013 sale by CONSOL Energy Inc. to Murray Energy of the following possible last signatory operators: Consolidation Coal Company, McElroy Coal Company, Southern Ohio Coal Company, Central Ohio Coal Company, Keystone Coal Mining Corp., and Eight-Four Coal Mining Company (the “Sold Subsidiaries”). On May 2, 2020, the Trustees of the UMWA 1992 Benefit Plan sued CNX and CONSOL Energy Inc. (“CONSOL”) in federal court contending that the Sold Subsidiaries were last signatory operators and that CNX and CONSOL are related persons to the Sold Subsidiaries and, as such, CNX and CONSOL are jointly and severally liable for the Coal Act health benefits allegedly owed to the eligible retirees traced to the Sold Subsidiaries. The 1992 Plan seeks, among other relief, a declaration that CNX and CONSOL are obligated to enroll the eligible retirees attributed to the Sold Subsidiaries in a Section 9711 Plan; that CNX and CONSOL are liable to post the security required by Section 9712; and, that CNX and CONSOL are liable to pay per beneficiary premiums until the eligible retirees are enrolled in a Section 9711 plan, and other fees, costs and disbursements under the Coal Act. We disagree with the suit filed by the UMWA 1992 Plan, have filed a Motion to Dismiss and intend to defend this action. Further, under the Separation and Distribution Agreement that was entered into at the time we spun-out our coal business in 2017, CONSOL agreed to indemnify CNX for all coal-related liabilities, including this lawsuit. With respect to this matter, although a loss is possible, it is not probable, and accordingly no accrual has been recognized. On July 22, 2021, CNX received a letter from the UMWA 1974 Pension Plan requesting information related to the facts and circumstances surrounding the 2013 sale of certain of its coal subsidiaries to Murray Energy. The letter indicates that litigation related to potential withdrawal liabilities from the plan created by the 2019 bankruptcy of Murray Energy is reasonably foreseeable. At this time, no liability has been assessed. Under the Separation and Distribution Agreement that was entered into at the time we spun-out our coal business in 2017, CONSOL agreed to indemnify CNX for all coal-related liabilities including any potential withdrawal liabilities. At December 31, 2021, CNX has provided the following financial guarantees, unconditional purchase obligations, and letters of credit to certain third-parties as described by major category in the following tables. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments. These amounts have not been reduced for potential recoveries under recourse or collateralization provisions. Generally, recoveries under reclamation bonds would be limited to the extent of the work performed at the time of the default. No amounts related to these unconditional purchase obligations and letters of credit are recorded as liabilities in the financial statements. CNX management believes that the commitments in the following table will expire without being funded, and therefore will not have a material adverse effect on financial condition. Amount of Commitment Expiration Per Period Total Less Than 1-3 Years 3-5 Years Beyond Letters of Credit: Firm Transportation $ 181,194 $ 181,194 $ — $ — $ — Other 2,967 2,967 — — — Total Letters of Credit 184,161 184,161 — — — Surety Bonds: Employee-Related 2,600 2,600 — — — Environmental 11,984 10,524 1,460 — — Financial Guarantees 81,670 81,670 — — — Other 8,834 7,206 1,628 — — Total Surety Bonds 105,088 102,000 3,088 — — Total Commitments $ 289,249 $ 286,161 $ 3,088 $ — $ — Excluded from the above table are commitments and guarantees entered into in conjunction with the spin-off of the Company's coal business in November 2017. Although CONSOL has agreed to indemnify CNX to the extent that CNX would be called upon to pay any of these liabilities, there is no assurance that CONSOL will satisfy its obligations to indemnify CNX in the event that CNX is so called upon (See “Item 1A. Risk Factors” in this Form 10-K). CNX enters into long-term unconditional purchase obligations to procure major equipment purchases, natural gas firm transportation, gas drilling services and other operating goods and services. These purchase obligations are not recorded in the Consolidated Balance Sheets. As of December 31, 2021, the purchase obligations for each of the next five years and beyond are as follows: Obligations Due Amount Less than 1 year $ 258,573 1 - 3 years 438,563 3 - 5 years 387,027 More than 5 years 896,943 Total Purchase Obligations $ 1,981,106 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION: The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company evaluates the performance of its reportable segments based on total revenue and other operating income, and operating expenses directly attributable to that segment. Certain expenses are managed outside the reportable segments and therefore are not allocated. These expenses include, but are not limited to, interest expense, impairment of exploration and production properties, impairment of goodwill and other corporate expenses such as selling, general and administrative costs. CNX's principal activity is to produce pipeline quality natural gas for sale primarily to gas wholesalers and the Company has two reportable segments that conducts those operations: Shale and Coalbed Methane. The Other Segment includes nominal 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 expenses that are managed outside the reportable segments as discussed above. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses. Prior to the Merger of CNXM that occurred in September 2020 (See Note 4 - Acquisitions and Dispositions), CNX consisted of two principal business divisions: Exploration and Production (E&P) and Midstream. The E&P Division included four reportable segments, Marcellus Shale, Utica Shale, Coalbed Methane and Other Gas. Industry segment results for the year ended December 31, 2021 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,988,993 $ 193,578 $ 1,358 $ 2,183,929 (A) Purchased Gas Revenue — — 99,713 99,713 Loss on Commodity Derivative Instruments (492,526) (46,304) (1,093,903) (1,632,733) Other Revenue and Operating Income 81,267 — 24,616 105,883 (B) Total Revenue and Other Operating Income (Loss) $ 1,577,734 $ 147,274 $ (968,216) $ 756,792 Total Operating Expense $ 804,004 $ 117,900 $ 312,970 $ 1,234,874 Earnings (Loss) Before Income Tax $ 773,730 $ 29,374 $ (1,439,617) $ (636,513) Segment Assets $ 6,071,495 $ 1,047,851 $ 981,405 $ 8,100,751 (C) Depreciation, Depletion and Amortization $ 440,024 $ 58,602 $ 16,492 $ 515,118 Capital Expenditures $ 453,603 $ 10,880 $ 1,378 $ 465,861 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $334,407 to Citadel Energy Marketing LLC and $235,760 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with external customers for the period. (B) Includes midstream revenue of $81,267 and equity in earnings of unconsolidated affiliates of $5,780 for Shale and Other, respectively. (C) Includes investments in unconsolidated equity affiliates of $17,301 . Industry segment results for the year ended December 31, 2020 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 781,038 $ 114,366 $ 1,341 $ 896,745 (D) Purchased Gas Revenue — — 105,792 105,792 Gain (Loss) on Commodity Derivative Instruments 337,269 39,884 (204,171) 172,982 (E) Other Revenue and Operating Income 64,710 — 17,749 82,459 (F) Total Revenue and Other Operating Income (Loss) $ 1,183,017 $ 154,250 $ (79,289) $ 1,257,978 Total Operating Expense $ 709,036 $ 127,845 $ 860,863 $ 1,697,744 Earnings (Loss) Before Income Tax $ 473,981 $ 26,405 $ (1,103,217) $ (602,831) Segment Assets $ 6,068,933 $ 1,095,816 $ 877,015 $ 8,041,764 (G) Depreciation, Depletion and Amortization $ 416,441 $ 69,745 $ 15,635 $ 501,821 Capital Expenditures $ 474,545 $ 9,789 $ 2,957 $ 487,291 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $167,390 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (E) Included in Other is a realized gain on commodity derivative instruments of $83,997 related to the monetization of hedges (see Note 19 - Derivative Instruments for more information). (F) Includes midstream revenue of $64,710 and equity in losses of unconsolidated affiliates of $688 for Shale and Other, respectively. (G) Includes investments in unconsolidated equity affiliates of $16,022. Industry segment results for the year ended December 31, 2019 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,199,276 $ 163,893 $ 1,156 $ 1,364,325 (H) Purchased Gas Revenue — — 94,027 94,027 Gain on Commodity Derivative Instruments 62,418 7,335 306,352 376,105 Other Revenue and Operating Income 74,314 — 13,678 87,992 (I) Total Revenue and Other Operating Income $ 1,336,008 $ 171,228 $ 415,213 $ 1,922,449 Total Operating Expense $ 787,488 $ 135,778 $ 813,207 $ 1,736,473 Earnings (Loss) Before Income Tax $ 548,520 $ 35,450 $ (524,286) $ 59,684 Segment Assets $ 6,527,245 $ 1,222,005 $ 1,311,556 $ 9,060,806 (J) Depreciation, Depletion and Amortization $ 427,219 $ 73,189 $ 8,055 $ 508,463 Capital Expenditures $ 1,175,091 $ 11,333 $ 6,175 $ 1,192,599 (H) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $214,980 to Direct Energy Business Marketing LLC and $147,540 to NJR Energy Services Company, each of which comprises over 10% of revenue from contracts with external customers for the period. (I) Includes midstream revenue of $74,314 and equity in earnings of unconsolidated affiliates of $2,103 for Shale and Other, respectively. (J) Includes investments in unconsolidated equity affiliates of $16,710. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income: For the Years Ended December 31, 2021 2020 2019 Total Segment Revenue from Contracts with External Customers $ 2,364,909 $ 1,067,247 $ 1,532,666 (Loss) Gain on Commodity Derivative Instruments (1,632,733) 172,982 376,105 Other Operating Income 24,616 17,749 13,678 Total Consolidated Revenue and Other Operating Income $ 756,792 $ 1,257,978 $ 1,922,449 |
Supplemental Gas Data (unaudite
Supplemental Gas Data (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Extractive Industries [Abstract] | |
Supplemental Gas Data (unaudited) | 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).” The supplementary information summarized below presents the results of natural gas and oil activities for the E&P segment in accordance with the successful efforts method of accounting for production activities. Capitalized Costs: As of December 31, 2021 2020 Intangible Drilling Costs $ 5,247,800 $ 4,965,252 Gas Gathering Assets 2,483,561 2,510,916 Proved Gas Properties 1,312,706 1,253,094 Unproved Gas Properties 730,400 725,705 Gas Wells and Related Equipment 1,202,731 1,120,061 Other Gas Assets 96,279 95,734 Total Property, Plant and Equipment 11,073,477 10,670,762 Accumulated Depreciation, Depletion and Amortization (4,279,070) (3,852,593) Net Capitalized Costs $ 6,794,407 $ 6,818,169 Costs incurred for property acquisition, exploration and development (*): For the Years Ended December 31, 2021 2020 2019 Property Acquisitions: Proved Properties $ 32,355 $ 16,622 $ 36,710 Unproved Properties 20,568 8,060 24,760 Development** 393,641 432,438 1,063,945 Exploration 30,927 33,644 79,855 Total $ 477,491 $ 490,764 $ 1,205,270 __________ (*) Includes costs incurred whether capitalized or expensed. (**) Includes development costs for midstream of $35 million, $67 million and $325 million for 2021, 2020 and 2019, respectively. Results of Operations for Producing Activities: For the Years Ended December 31, 2021 2020 2019 Natural Gas, NGLs and Oil Revenue $ 2,183,929 $ 896,745 $ 1,364,325 Realized (Loss) Gain on Commodity Derivative Instruments (539,016) 461,217 69,780 Unrealized (Loss) Gain on Commodity Derivative Instruments (1,093,717) (288,235) 306,325 Purchased Gas Revenue 99,713 105,792 94,027 Total Revenue 650,909 1,175,519 1,834,457 Lease Operating Expense 46,256 40,407 65,443 Production, Ad Valorem and Other Fees 34,051 24,196 27,461 Transportation, Gathering and Compression 343,635 285,683 330,539 Purchased Gas Costs 93,776 100,902 90,553 Impairment of Exploration and Production Properties — 61,849 327,400 Impairment of Undeveloped Properties — — 119,429 Exploration Costs 20,626 14,994 44,380 Depreciation, Depletion and Amortization 515,118 501,821 508,463 Total Costs 1,053,462 1,029,852 1,513,668 Pre-tax Operating (Loss) Income (402,553) 145,667 320,789 Income Tax (Benefit) Expense (87,354) 42,098 149,167 Results of Operations for Producing Activities excluding Corporate and Interest Costs $ (315,199) $ 103,569 $ 171,622 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, 2021 2020 2019 Production (MMcfe) 590,248 511,072 539,149 Total Average Sales Price Before Effects of Commodity Derivative Financial Settlements (per Mcfe) $ 3.70 $ 1.75 $ 2.53 Average Effects of Commodity Derivative Financial Settlements (per Mcfe) $ (0.98) $ 0.78 $ 0.14 Total Average Sales Price Including Effects of Commodity Derivative Financial Settlements (per Mcfe) $ 2.79 $ 2.49 $ 2.66 Average Lifting Costs, Excluding Ad Valorem and Severance Taxes (per Mcfe) $ 0.08 $ 0.08 $ 0.12 During the years ended December 31, 2021, 2020 and 2019, the Company drilled 33.0, 29.0, and 75.7 net development wells, respectively. There were no net dry development wells in 2021 and 2020, and 1.0 net dry development well in 2019. There were no net exploratory wells drilled during the year ended December 31, 2021. There were 2.0 and 5.0 net exploratory wells drilled during the years ended December 31, 2020 and 2019, respectively. There were no net dry exploratory wells in 2021, 2020 or 2019. As of December 31, 2021, there were 13.0 net development wells drilled but uncompleted. Additionally, there were no net exploratory wells that have been completed and are awaiting final tie-in to production. CNX is committed to provide 394.6 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, 2021, the number of producing wells, developed acreage and undeveloped acreage: Gross(1) Net(2) Producing Gas Wells (including Gob Wells) - Working Interest 4,716 4,432 Producing Gas Wells - Royalty Interest 2,031 — Producing Oil Wells - Royalty Interest 150 — Acreage Position: Proved Developed Acreage 376,850 376,850 Proved Undeveloped Acreage 41,605 41,605 Unproved Acreage 4,756,680 3,442,159 Total Acreage 5,175,135 3,860,614 ____________ (1) All of our acreage identified as proved developed and undeveloped is controlled fully by CNX through ownership of a 100% working interest. (2) Net acres include acreage attributable to our working interests in the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable. Proved Oil and Gas Reserves Quantities: Annually, the preparation of natural gas reserves estimates is 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. As part of the annual review, management reviews and approves changes in the future development plan and the impact to proved-undeveloped locations to ensure that annual changes are aligned with the overall strategic business plan of the Company. A detailed review is completed to ensure that all proved undeveloped locations will be fully developed within five-years of the reserves booking. As part of the development plan review, management reviews current well production data, acreage position, downstream infrastructure availability, operational leases and other commitments, financial capacity to complete the development and individual project economics in expected future gas pricing scenarios. The input data verification includes reviews of the price and operating, and development cost assumptions as well as tax rates by jurisdiction 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 registered professional engineer in the state of West Virginia with over 17 years of experience in the oil and gas industry. The Company’s gas reserves results, which are reported in Note 22 - Supplemental Gas Data for the year ended December 31, 2021 Form 10-K, were audited by independent petroleum engineers, 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 14 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, 2018 (a) 7,436,338 65,904 8,261 7,881,335 Revisions (b) (521,617) 5,926 (5,418) (518,570) Price Changes (40,773) (740) (5) (45,246) Extensions and Discoveries (c) 1,569,813 10,182 2,732 1,647,297 Production (505,355) (5,428) (204) (539,149) Balance December 31, 2019 (a) 7,938,406 75,844 5,366 8,425,667 Revisions (d) 407,836 51,857 3,525 740,129 Price Changes (1,019,523) (50,456) (4,946) (1,351,934) Extensions and Discoveries (c) 2,188,773 9,299 400 2,246,968 Production (481,426) (4,677) (264) (511,072) Balance December 31, 2020 (a) 9,034,066 81,867 4,081 9,549,758 Revisions (e) (409,215) 13,655 39 (327,050) Price Changes 82,248 692 22 86,532 Extensions and Discoveries (c) 832,696 12,047 294 906,738 Production (551,988) (5,976) (400) (590,248) Balance December 31, 2021 (a) 8,987,807 102,285 4,036 9,625,730 Proved developed reserves: December 31, 2019 4,473,534 59,800 1,087 4,838,858 December 31, 2020 4,939,283 42,204 1,207 5,199,748 December 31, 2021 5,569,332 53,204 2,843 5,905,611 Proved undeveloped reserves: December 31, 2019 3,464,873 16,044 4,278 3,586,809 December 31, 2020 4,094,783 39,664 2,874 4,350,010 December 31, 2021 3,418,475 49,081 1,193 3,720,119 __________ (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 downward revisions in 2019 are due to changes in our five-year development plan due to increased dry gas investment which increased dry gas proved undeveloped reserves and decreased wet gas investment which lowered wet gas proved undeveloped reserves. The investment shift was a result of a significant decrease in forecasted liquids price realizations in the five-year plan. These five-year plan changes resulted in the removal of 872 Bcfe in reserves for wet gas investment. There was additionally a reduction of 304 Bcfe related to removal of proved undeveloped locations removed from our plans due to the SEC five-year development rule. These downward revisions were partially offset by efficiencies in operations investment in dry gas properties which increased reserves by 657 Bcfe. (c) Extensions and Discoveries in 2019, 2020, and 2021 are due to the addition of wells on the Company’s Shale acreage more than one offset location away with continued use of reliable technology. The Company uses reliable technologies when assigning reserves to undeveloped locations, including wire line open-hole log data, performance data, geological log cross sections, core data and statistical analysis. The statistical methods use production performance of analog wells and include data from operated and competitor wells. We also use geophysical data that includes data from our wells, published documents, state data-sits and data exchanges to confirm continuity of the formation. Total proved extensions and discoveries are a combination of proved developed and proved undeveloped reserves; and, extensions and discoveries for proven developed reserves are associated with non-operated assets and exploratory wells. In 2021, 2020 and 2019, the Company added 26 Bcfe, 70 Bcfe and 77 Bcfe, respectively, related to exploratory and non-operated wells. (d) Upward revisions in 2020 are due to performance revisions of 579 Bcfe related to production performance and an 853 Bcfe increase in reserves due to a decrease in operating costs in 2020. These upward revisions were partially offset by negative revisions of 677 Bcfe due to changes in our development plan related to the removal of four Utica wells and 23 Marcellus wells from our development plan. (e) The downward revisions in 2021 are partly due to changes in our five-year development plan that are driven by acreage consolidation initiatives. These initiatives resulted in 267 Bcfe being removed. Additional downward revisions, of 356 Bcfe are due to additional changes in our 5 year development plans from continued focus on optimizing and maximizing value of our assets. The remaining 20 Bcfe was removed due to risk in well development. 60 Bcfe was removed due to the 5 year rule. Offsetting these negative revisions are positive performance revisions of 46 Bcfe associated with Proved Developed Producing assets and 331 Bcfe related to increase performance in Proved Undeveloped assets. For the Year Ended December 31, 2021 Proved Undeveloped Reserves (MMcfe) Beginning Proved Undeveloped Reserves 4,350,010 Undeveloped Reserves Transferred to Developed (a) (1,133,110) Revisions Due to 5 Year Rule (b) (59,948) Price Revisions (4,939) Revisions Due to Plan Changes (c) (643,994) Revisions Due to Changes Related to Well Performance (d) 331,135 Extension and Discoveries (e) 880,965 Ending Proved Undeveloped Reserves(f) 3,720,119 _________ (a) During 2021, various exploration and development drilling and evaluations were completed. Approximately, $248,232 of capital was spent in the year ended December 31, 2021 related to undeveloped reserves that were transferred to developed. (b) Due to the 5 Year Rule, 60 Bcfe of reserves were removed. (c) The downward revisions for 2021 plan changes is due to the removal of 267 Bcfe of reserves related acreage consolidation initiatives. We also had 356 Bcfe which were removed from our 5 year development plan from our continued focus on optimizing the development timing of our assets. The remaining 20 Bcfe was removed due to risk in well development. (d) The upward revisions of 331 Bcfe are due to increased ethane extractions for our undeveloped locations related to increased production performance. (e) Extensions and discoveries are due mainly to the addition of 476 Bcfe related to 29 Marcellus wells within our Southwest Pennsylvania, Central Pennsylvania and West Virginia operations and 405 Bcfe of 16 Utica wells within our Central Pennsylvania and Southwest Pennsylvania operations. The Company uses reliable technologies when assigning reserves to undeveloped locations, including wire line open-hole log data, performance data, geological log cross sections, core data and statistical analysis. The statistical methods use production performance of analog wells and include data from operated and competitor wells. We also use geophysical data that includes data from our wells, published documents, state data-sites and data exchanges to confirm continuity of the formation. (f) Included in proved undeveloped reserves at December 31, 2021 are approximately 310 MMcfe of reserves that have been reported for more than five years. These reserves are all attributable to acreage within the current operating plan identified by the life-of-mine timing maps for the Buchanan mine. The annual increase in proved undeveloped gob reserves is a result of a change in planned mining activity, which includes an expanded mining footprint, partially offset by the conversion to proved developed gob reserves. 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 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. The following table indicates the changes to the Company’s suspended exploratory well costs: For the Years Ended December 31, 2021 2020 2019 Balance, Beginning of Period $ 9,062 $ 8,984 $ 8,178 Additions to Capitalized Exploratory Well Costs Pending the Determination of Proved Reserves — 28,336 66,409 Reclassifications to Wells, Facilities and Equipment Based on the Determination of Proved Reserves — (28,258) (65,603) Capitalized Exploratory Well Costs Charged to Expense (9,062) — — Balance, End of Period $ — $ 9,062 $ 8,984 At December 31, 2020 there was one well pending the determination of proved reserves. During the year-ended December 31, 2021, the Company determined it would be more economical to access the underlying reserves from a different location and the costs associated with this well were recorded to Exploration and Production Related Other Costs in the Consolidated Statements of Income. Standardized Measure of Discounted Future Net Cash Flows: The following information has been prepared in accordance with the provisions of the Financial Accounting Standards Board's Accounting Standards Update No. 2010-03, “Extractive Activities-Oil and Gas (Topic 932).” This topic requires the standardized measure of discounted future net cash flows to be based on the average, first-day-of-the-month price for the year. Because prices used in the calculation are average prices for that year, the standardized measure could vary significantly from year to year based on the market conditions that occurred. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted as representing current value to CNX. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary. CNX investment and operating decisions are not based on the information presented, but on a wide range of reserve estimates that include probable as well as proved reserves and on different price and cost assumptions. The standardized measure is intended to provide a better means for comparing the value of CNX proved reserves at a given time with those of other gas producing companies than is provided by a comparison of raw proved reserve quantities. December 31, 2021 2020 2019 Future Cash Flows (a) Revenues $ 31,838,532 $ 16,577,563 $ 19,489,588 Production Costs (8,246,671) (6,071,763) (7,903,120) Development Costs (b) (1,735,784) (1,957,519) (1,121,073) Income Tax Expense (5,838,632) (2,235,205) (2,720,994) Future Net Cash Flows 16,017,445 6,313,076 7,744,401 Discounted to Present Value at a 10% Annual Rate (10,135,869) (3,677,340) (4,673,932) Total Standardized Measure of Discounted Net Cash Flows $ 5,881,576 $ 2,635,736 $ 3,070,469 _________ (a) For 2021, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2021, adjusted for energy content and a regional price differential. For 2021, this adjusted natural gas price was $3.19 per Mcf, the adjusted oil price was $55.72 per barrel and the adjusted NGL price was $28.44 per barrel. In 2020, as the result of the CNXM take-in transaction (see Note 4 - Acquisitions and Dispositions), there was a change in production costs and development costs. Historically the production costs included contractual CNXM rates but in 2020 this was replaced with actual operating costs of the midstream infrastructure. Additionally, our development costs in 2020 include capital related to connecting undeveloped Shale wells to the midstream gathering systems; in prior years this was captured within the CNXM contractual rate within production costs. These changes resulted in an increase of $932 million to the prior year Standardized Measure of Discounted Net Cash Flows. For 2020, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2020, adjusted for energy content and a regional price differential. For 2020, this adjusted natural gas price was $1.70 per Mcf, the adjusted oil price was $35.61 per barrel and the adjusted NGL price was $13.18 per barrel. For 2019, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2019, adjusted for energy content and a regional price differential. For 2019, this adjusted natural gas price was $2.24 per Mcf, the adjusted oil price was $44.31 per barrel and the adjusted NGL price was $19.10 per barrel. (b) Development costs for 2021 include $405,700 of plugging and abandonment costs and $185,074 of Midstream capital on an undiscounted pre-tax basis. On a PV-10 pre-tax discounted basis, these amounts equate to $7,166 and $154,200, respectively. Development costs for 2020 include $402,174 of plugging and abandonment costs and $286,724 of Midstream capital on an undiscounted pre-tax basis. On a PV-10 pre-tax discounted basis, these amounts equate to $18,357 and $231,512, respectively. The increase from 2019 was primarily due to the addition of Midstream capital as a result of the Merger that occurred on September 28, 2020 (See Note 4 - Acquisitions and Dispositions). The following are the principal sources of change in the standardized measure of discounted future net cash flows for consolidated operations during: December 31, 2021 2020 2019 Balance at Beginning of Period $ 2,635,736 $ 3,070,469 $ 4,655,457 Net Changes in Sales Prices and Production Costs 5,272,386 (695,216) (2,944,555) Sales Net of Production Costs (1,220,971) (1,007,676) (824,360) Net Change Due to Revisions in Quantity Estimates (334,660) 322,820 (252,796) Net Change Due to Extensions, Discoveries and Improved Recovery 699,710 268,196 654,027 Development Costs Incurred During the Period 393,641 434,273 739,874 Difference in Previously Estimated Development Costs Compared to Actual Costs Incurred During the Period (33,175) (129,642) (323,922) Changes in Estimated Future Development Costs 31,406 (499,316) (24,469) Net Change in Future Income Taxes (1,231,883) 138,404 409,797 Accretion 329,782 390,391 583,320 Timing and Other (660,396) 343,033 398,096 Total Discounted Cash Flow at End of Period $ 5,881,576 $ 2,635,736 $ 3,070,469 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | CNX RESOURCES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts (Dollars in thousands) Additions Deductions Balance at Release of Balance at Beginning Charged to Valuation Charged to End of Period Expense Allowance Expense of Period Year Ended December 31, 2021 State Operating Loss Carry-Forwards $ 79,198 $ 41,300 $ (8,200) $ — $ 112,298 Charitable Contributions 706 (610) — 96 Foreign Tax Credits 43,194 — (3,790) — 39,404 Total $ 123,098 $ 41,300 $ (12,600) $ — $ 151,798 Year Ended December 31, 2020 State Operating Loss Carry-Forwards $ 81,202 $ — $ (2,004) $ — $ 79,198 Charitable Contributions 658 48 — — 706 Foreign Tax Credits 43,194 — — — 43,194 Total $ 125,054 $ 48 $ (2,004) $ — $ 123,098 Year Ended December 31, 2019 State Operating Loss Carry-Forwards $ 47,964 $ 33,238 $ — $ — $ 81,202 Charitable Contributions 3,297 — (2,639) — 658 Foreign Tax Credits 43,194 — — — 43,194 Total $ 94,455 $ 33,238 $ (2,639) $ — $ 125,054 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation: The Consolidated Financial Statements include the accounts of CNX Resources Corporation, its wholly-owned subsidiaries, and its majority-owned and/or controlled subsidiaries. Investments in business entities in which CNX does not have control but has the ability to exercise significant influence over the operating and financial policies, are accounted for under the equity method. All significant intercompany transactions and accounts have been eliminated in consolidation. Investments in oil and natural gas producing entities are accounted for under the proportionate consolidation method. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as various disclosures. Actual results could differ from those estimates. The most significant estimates included in, but not limited to, the preparation of the consolidated financial statements are related to long-lived assets (including intangible assets and goodwill), accounts receivable credit losses, the values of natural gas, NGLs, condensate and oil (collectively “natural gas”) reserves, asset retirement obligations, deferred income tax assets and liabilities, contingencies, fair value of derivative instruments, the fair value of the liability and equity components of the convertible senior notes, stock-based compensation and salary retirement benefits. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash: Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term securities with original maturities of three months or less. Restricted cash at December 31, 2020 consisted of cash that the Company was contractually obligated to maintain in accordance with the terms of the Cardinal States Gathering LLC and CSG Holdings II LLC Credit Agreements, each dated March 13, 2020. During the year ended December 31, 2021 CNX, repaid in full the outstanding principal on both of these non-revolving credit facilities and terminated the Credit Agreements |
Trade Accounts Receivable and Allowance for Credit Losses | Trade Accounts Receivable and Allowance for Credit Losses: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Management records an allowance for credit losses related to the collectability of third-party customers' receivables using the historical aging of the customer receivable balance. The collectability is determined based on past events, including historical experience, customer credit rating, as well as current market conditions. CNX monitors customer ratings and collectability on an on-going basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value. The cost of supplies inventory is determined by the average cost method and includes operating and maintenance supplies to be used in the Company's operations. |
Property, Plant and Equipment | Property, Plant and Equipment: CNX uses the successful efforts method of accounting for natural gas producing activities. Costs of property acquisitions, successful exploratory, development wells and related support equipment and facilities are capitalized. Periodic valuation provisions for impairment of capitalized costs of unproved mineral interests are expensed. Costs of unsuccessful exploratory wells are expensed when such wells are determined to be non-productive, or if the determination cannot be made after finding sufficient quantities of reserves to continue evaluating the viability of the project. The costs of producing properties and mineral interests are amortized using the units-of-production method. Depreciation, depletion and amortization expense is calculated based on the actual produced sales volumes multiplied by the applicable rate per unit, which is derived by dividing the net capitalized costs by the number of units expected to be produced over the life of the reserves. Wells and related equipment and intangible drilling costs are also amortized on a units-of-production method. Proved developed reserves, as estimated by petroleum engineers, are used to calculate amortization of wells and related equipment and facilities and amortization of intangible drilling costs. Total proved reserves, also estimated by petroleum engineers, are used to calculate depletion on property acquisitions. Proved oil and natural gas reserve estimates are based on geological and engineering evaluations of in-place hydrocarbon volumes. Units-of-production amortization rates are revised at least once per year, or more frequently if events and circumstances indicate an adjustment is necessary. Such revisions are accounted for prospectively as changes in accounting estimates. The Company recorded depreciation, depletion and amortization expense related to proved gas properties using the units-of-production method of $415,069, $400,948, and $424,238 for the years ended December 31, 2021, 2020 and 2019, respectively. Property, plant and equipment is recorded at cost upon acquisition. Expenditures which extend the useful lives of existing plant and equipment are capitalized. Interest costs applicable to major asset additions are capitalized during the construction period. Planned major maintenance costs which do not extend the useful lives of existing plant and equipment are expensed as incurred. Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives or lease terms, generally as follows: Years Buildings and Improvements 10 to 45 Machinery and Equipment 3 to 25 Gathering and Transmission 30 to 40 Leasehold Improvements Life of Lease |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to its estimated fair value which is usually measured based on an estimate of future discounted cash flows. Impairment of equity investments is recorded when indicators of impairment are present, and the estimated fair value of the investment is less than the assets' carrying value. |
Impairment of Proved and Unproved Properties | Impairment of Proved Properties: CNX performs a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable, over proved properties using the published NYMEX forward prices, timing, methods and other assumptions consistent with historical periods. When indicators of impairment are present, tests require that the Company first compare expected future undiscounted cash flows by asset group to their respective carrying values. If the carrying amount exceeds the estimated undiscounted future cash flows, a reduction of the carrying amount of the natural gas properties to their estimated fair values is required, which is determined based on discounted cash flow techniques using significant assumptions including projected revenues, future commodity prices and a market-specific weighted average cost of capital which are affected by expectations about future market and economic conditions. During the year ended December 31, 2020, CNX recognized certain indicators of impairments specific to our Southwest Pennsylvania Coalbed Methane asset group and determined that the carrying value of that asset group was not recoverable. The fair value of the asset group was estimated by using level 3 inputs which consisted of discounting the estimated future cash flows using discount rates and other assumptions that market participants would use in their estimates of fair value. As a result, an impairment of $61,849 was recognized and is included in Impairment of Exploration and Production Properties in the Consolidated Statements of Income. The impairment was related to an economic decision to temporarily idle certain wells and the related processing facility during the first quarter. During the fourth quarter of 2019, CNX identified certain indicators of impairment specific to our Central Pennsylvania Marcellus asset group and determined that the carrying value of that asset group was not recoverable. The fair value of the asset group was estimated by using level 3 inputs which consisted of discounting the estimated future cash flows using discount rates and other assumptions that market participants would use in their estimates of fair value. As a result, an impairment of $327,400 was included in Impairment of Exploration and Production Properties in the Consolidated Statements of Income. This impairment was related to 56 operated wells and approximately 51,000 acres within our Central Pennsylvania Marcellus proved properties in Armstrong, Indiana, Jefferson and Westmoreland counties. The majority of these properties were developed prior to 2013 and the last of these properties were developed in 2015. Impairment of Unproved Properties: Capitalized costs of unproved oil and gas properties are evaluated at least annually for recoverability on a prospective basis. Indicators of potential impairment include, but are not limited to, changes brought about by economic factors, commodity price outlooks, our geologists’ evaluation of the property, favorable or unfavorable activity on the property being evaluated and/or adjacent properties, potential shifts in business strategy employed by management and historical experience. The likelihood of an impairment of unproved oil and gas properties increases as the expiration of a lease term approaches if drilling activity has |
Impairment of Goodwill and Definite-Lived Intangible Assets | Impairment of Goodwill: In connection with the Midstream Acquisition (as defined in Note 4 – Acquisitions and Dispositions), CNX recorded $796,359 of goodwill through the application of purchase accounting (See Note 9 - Goodwill and Other Intangible Assets for more information). The goodwill recorded was allocated in its entirety to the Midstream reporting unit within the Shale segment. Goodwill is the cost of an acquisition less the fair value of the identifiable net assets of the acquired business. Goodwill is not amortized, but rather it is evaluated for impairment annually during the fourth quarter, or more frequently if recent events or prevailing conditions indicate it is more likely than not that the fair value of a reporting unit is less than its carrying value. These indicators include, but are not limited to, overall financial performance, industry and market considerations, anticipated future cash flows and discount rates, changes in the stock price with regards to CNX, regulatory and legal developments, and other relevant factors. In connection with the annual evaluation of goodwill for impairment or earlier if an impairment indicator is identified, CNX may first consider qualitative factors to assess whether there are indicators that it is more likely than not that the fair value of a reporting unit may not exceed its carrying amount. If after assessing such factors or circumstances, CNX determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then a quantitative assessment is not required. If CNX chooses to bypass the qualitative assessment, or if it chooses to perform a qualitative assessment but is unable to qualitatively conclude that no impairment has occurred, then CNX will perform a quantitative assessment. In the case of a quantitative assessment, CNX estimates the fair value of the reporting unit with which the goodwill is associated using level 3 inputs and compares it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, an impairment charge is recognized for the excess of the reporting unit's carrying value over its fair value. The Company uses a combination of the income approach (generally a discounted cash flow method) and market approach (which may include the guideline public company method and/or the guideline transaction method) to estimate the fair value of a reporting unit. The income approach is used to estimate value based on the present value of future economic benefits that are expected to be produced by an asset or business entity. This approach generally involves two general steps: (i) The first step involves establishing a forecast of the estimated future net cash flows expected to accrue directly or indirectly to the owner of the asset over its remaining useful life or to the owner of the business entity (including a reporting unit). (ii) The second step involves discounting these estimated future net cash flows to their present value using a market rate of return. CNX determines the fair value based on estimated future revenues and earnings before deducting net interest expense (interest expense less interest income) and income taxes (EBITDA - a non-GAAP financial measure), and also includes estimates for capital expenditures, discounted to present value using an industry rate adjusted for company-specific risk, which management feels reflects the overall level of inherent risk of the reporting unit. These assumptions are affected by expectations about future market, industry and economic conditions. Cash flow projections are derived from board approved budgeted amounts and require us to make projections and assumptions for many years into the future for demand, competition and operating costs, among other variables. Subsequent cash flows are developed using growth or contraction rates that management believes are reasonably likely to occur. The estimates of future cash flows and EBITDA are subjective in nature and are subject to impacts from business risks as described in Item 1A. Risk Factors of this Form 10-K. The fair value estimation process requires considerable judgment and determining the fair value is sensitive to changes in assumptions impacting management’s estimates of future financial results. Although CNX believes the estimates and assumptions used in estimating the fair value are reasonable and appropriate, different assumptions and estimates could materially impact the estimated fair value. Future results could differ from our current estimates and assumptions. In connection with CNX's assessment of goodwill in the first quarter of 2020 in relation to the deteriorating macroeconomic conditions, and the decline in the observable market value of CNXM securities both in relation to the COVID-19 pandemic and the overall decline in the master limited partnership (MLP) market space, an impairment indicator was identified. CNX bypassed the qualitative assessment and performed a quantitative test that utilized a combination of the income and market approaches to estimate the fair value of the Midstream reporting unit. As a result of this assessment, CNX concluded that the carrying value exceeded its estimated fair value, and as a result, an impairment of $473,045 was included in Impairment of Goodwill in the Consolidated Statements of Income. In connection with our annual assessment of goodwill in the fourth quarter of 2021, we bypassed the qualitative assessment and performed a quantitative test that utilized a combination of the income and market approaches to estimate the fair value of the Midstream reporting unit. As a result of this assessment, we concluded that the estimated fair value exceeded carrying value, and accordingly no adjustment to goodwill was necessary. Any adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges relating to the Midstream reporting unit. Impairment of Definite-Lived Intangible Assets: Definite-lived intangible assets are amortized on a straight-line basis over their estimated economic lives and they are reviewed for impairment when indicators of impairment are present. Other intangible assets are comprised of customer relationships which are amortized on a straight-line basis over approximately 17 years. |
Income Taxes | Income Taxes: Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The provision for income taxes represents income taxes paid or payable for the current year and the change in deferred taxes, excluding the effects of acquisitions during the year. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a deferred tax benefit will not be realized. |
Asset Retirement Obligations | Asset Retirement Obligations: CNX accrues the costs to dismantle and remove gas-related facilities upon exhaustion of mineral reserves and related surface reclamation using the accounting treatment prescribed by the Asset Retirement and Environmental Obligations Topic of the FASB Accounting Standards Codification. This topic requires the fair value of an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. Estimates are regularly reviewed by management and are revised for changes in future estimated costs and regulatory requirements. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset. Amortization of the capitalized asset retirement cost is generally determined on a units-of-production basis. Accretion of the asset retirement obligation is recognized over time and generally will escalate over the life of the producing asset, typically as production declines. Accretion is included in Depreciation, Depletion and Amortization in the Consolidated Statements of Income. |
Investment Plan | Investment Plan: CNX has an investment plan that is available to most employees. Throughout the years ended December 31, 2021, 2020 and 2019, the Company's matching contribution was 6% of eligible compensation contributed by eligible employees. The Company may also make discretionary contributions to the Plan ranging from 1% to 6% of eligible compensation for eligible employees (as defined by the Plan). |
Revenue Recognition | Revenue Recognition: Revenues are recognized when the recognition criteria of ASC 606 are met, which generally occurs at the point in which title passes to the customers. For natural gas, NGL and oil revenue, this occurs at the contractual point of delivery. For revenues generated from natural gas gathering services provided to third-parties, this occurs when obligations under the terms of the contract with the shipper are satisfied. CNX sells a portion of its natural gas to accommodate the delivery points of its customers. In general, this gas is purchased at market price and re-sold on the same day at market price less a small transaction fee. These matching buy/sell transactions include a legal right of offset of obligations and have been simultaneously entered into with the counterparty. These transactions qualify for netting under the Nonmonetary Transactions Topic of the FASB Accounting Standards Codification and are, therefore, recorded net within the Consolidated Statements of Income in the Purchased Gas Revenue line. CNX purchases natural gas produced by third-parties at market prices less a fee. The gas purchased from third-parties is then resold to end users or gas marketers at current market prices. These revenues and expenses are recorded gross as Purchased Gas Revenue and Purchase Gas Costs, respectively, in the Consolidated Statements of Income. Purchased gas revenue is recognized when title passes to the customer. Purchased gas costs are recognized when title passes to CNX from the third-party. |
Contingencies | Contingencies: From time to time, CNX, or its subsidiaries, are subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations (including environmental remediation), employment and contract disputes and other claims and actions, arising out of the normal course of business. Liabilities are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated. Estimates are developed through consultation with legal counsel involved in the defense of these matters and are based upon the nature of the lawsuit, progress of the case in court, view of legal counsel, prior experience in similar matters and management's intended response. Environmental liabilities are not discounted or reduced by possible recoveries from third-parties. Legal fees associated with defending these various lawsuits and claims are expensed when incurred. |
Stock-Based Compensation | Stock-Based Compensation: Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated in accordance with the provisions of the Stock Compensation Topic of the FASB Accounting Standards Codification. CNX recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the award's vesting term. See Note 15 - Stock-Based Compensation for more information. |
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 are accounted for on a mark-to-market basis with the changes in fair value recorded in current period earnings. CNX enters into financial derivative instruments to manage its exposure to commodity price volatility. Natural gas commodity hedges are accounted for on a mark-to-market basis with changes in fair value recorded in current period earnings. None of the Company's counterparty master agreements currently require CNX to post collateral for any of its positions. However, as stated in the counterparty master agreements, if CNX's obligations with any of its counterparties cease to be secured on the same basis as similar obligations with the other lenders under the credit facility, CNX would be required 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 the counterparties. CNX recognizes all financial derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets on a gross basis, generally measured based upon Level 2 inputs, which is further described in Note 18 - Fair Value of Financial Instruments. 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. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2021, the FASB issued Accounting Standards Update (ASU) 2021-04 - Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This ASU provides guidance on how an issuer would measure and recognize the effect of these transactions. Specifically, it provides a principles-based framework to determine whether an issuer should recognize the modification or exchange as an adjustment to equity or an expense. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted. The Company is still evaluating the effect of adopting this guidance. In August 2020, the FASB issued ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This ASU simplifies an entity's accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features, simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification, requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards, requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of an entity's convertible debt at the instrument level, among other things. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2021 and will be applicable to the Convertible Senior Notes due May 2026 (“Convertible Notes”) that were issued in April 2020, for which the embedded conversion option was required to be separately accounted for as a component of stockholders’ equity. The Company adopted ASU 2020-06 on January 1, 2022 and in conjunction therewith recorded adjustments to, among other things, increase long-term debt for the value of the embedded conversion that was previously classified in additional paid-in-capital in stockholders’ equity. In March 2020, the FASB issued ASU 2020-04 - Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (IBORs) and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which clarifies that certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Reclassifications | Reclassifications: Certain amounts in prior periods have been reclassified to conform with the report classifications of the year ended December 31, 2021, with no effect on previously reported net income, stockholders' equity or statement of cash flows. |
Subsequent Events | Subsequent Events: The Company has evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent events were identified. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statement of cash flows: December 31, 2021 2020 2019 Cash and Cash Equivalents $ 3,565 $ 15,617 $ 16,283 Restricted Cash, Current Portion — 735 — Restricted Cash, Less Current Portion — 5,247 — Total Cash, Cash Equivalents, and Restricted Cash $ 3,565 $ 21,599 $ 16,283 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statement of cash flows: December 31, 2021 2020 2019 Cash and Cash Equivalents $ 3,565 $ 15,617 $ 16,283 Restricted Cash, Current Portion — 735 — Restricted Cash, Less Current Portion — 5,247 — Total Cash, Cash Equivalents, and Restricted Cash $ 3,565 $ 21,599 $ 16,283 |
Schedule of Allowance for Credit Loss | The following represents activity related to the allowance for credit losses for the years ended: December 31, 2021 2020 Allowance for Credit Losses - Trade, Beginning of Year $ 84 $ — Provision for Expected Credit Losses — 84 Allowance for Credit Losses - Trade, End of Period $ 84 $ 84 Allowance for Credit Losses - Other Receivables, Beginning of Year $ 3,248 $ 2,463 Provision for Expected Credit Losses 104 2,760 Write-off of Uncollectible Accounts (30) (1,975) Allowance for Credit Losses - Other Receivables, End of Period $ 3,322 $ 3,248 |
Schedule of Property, Plant and Equipment, Useful Lives | Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives or lease terms, generally as follows: Years Buildings and Improvements 10 to 45 Machinery and Equipment 3 to 25 Gathering and Transmission 30 to 40 Leasehold Improvements Life of Lease December 31, 2021 2020 Intangible Drilling Cost $ 5,247,800 $ 4,965,252 Gas Gathering Equipment 2,483,561 2,510,917 Proved Gas Properties 1,312,706 1,253,094 Gas Wells and Related Equipment 1,202,731 1,120,061 Unproved Gas Properties 730,400 725,705 Surface Land and Other Equipment 194,655 199,322 Other 190,249 189,645 Total Property, Plant and Equipment 11,362,102 10,963,996 Less: Accumulated Depreciation, Depletion and Amortization 4,372,619 3,938,451 Total Property, Plant and Equipment - Net $ 6,989,483 $ 7,025,545 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be antidilutive: For the Years Ended December 31, 2021 2020 2019 Anti-Dilutive Options 2,990,094 4,200,509 4,696,264 Anti-Dilutive Restricted Stock Units 2,436,846 2,160,727 1,282,582 Anti-Dilutive Performance Share Units 996,863 721,244 752,899 Anti-Dilutive Performance Share Options — — 927,268 6,423,803 7,082,480 7,659,013 |
Schedule of Earnings Per Share, Basic and Diluted | The computations for basic and diluted loss per share are as follows: For the Years Ended December 31, 2021 2020 2019 Net (Loss) Income $ (498,643) $ (428,744) $ 31,948 Less: Net Income Attributable to Non-Controlling Interest — 55,031 112,678 Net Loss Attributable to CNX Resources Shareholders $ (498,643) $ (483,775) $ (80,730) Weighted-Average Shares of Common Stock Outstanding 215,971,381 199,225,441 190,727,122 Effect of Diluted Shares* — — — Weighted-Average Diluted Shares of Common Stock Outstanding 215,971,381 199,225,441 190,727,122 Loss Per Share: Basic $ (2.31) $ (2.43) $ (0.42) Diluted $ (2.31) $ (2.43) $ (0.42) *During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is antidilutive. |
Schedule of Shares of Common Stock Outstanding | Shares of common stock outstanding were as follows: For the Years Ended December 31, 2021 2020 2019 Balance, Beginning of Year 220,440,993 186,642,962 198,663,342 Issuance Related to Stock-Based Compensation (1) 1,374,925 882,335 909,107 Retirement of Common Stock (2) (18,284,598) (4,138,527) (12,929,487) Issuance Related to CNXM Merger — 37,054,223 — Balance, End of Year 203,531,320 220,440,993 186,642,962 (1) See Note 15 - Stock-Based Compensation for additional information. (2) See Note 5 - Stock Repurchase for additional information. |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table is a disaggregation of revenue by major source: For the Years Ended December 31, 2021 2020 2019 Revenue from Contracts with Customers: Natural Gas Revenue $ 1,958,718 $ 823,132 $ 1,251,013 NGL Revenue 202,670 64,138 104,139 Oil/Condensate Revenue 22,541 9,475 9,173 Total Natural Gas, NGL and Oil Revenue 2,183,929 896,745 1,364,325 Purchased Gas Revenue 99,713 105,792 94,027 Other Sources of Revenue and Other Operating Income: (Loss) Gain on Commodity Derivative Instruments (1,632,733) 172,982 376,105 Other Revenue and Operating Income 105,883 82,459 87,992 Total Revenue and Other Operating Income $ 756,792 $ 1,257,978 $ 1,922,449 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense provided on earnings consisted of: For the Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ — $ (55,799) $ (51,243) U.S. State 17 12 (113) 17 (55,787) (51,356) Deferred: U.S. Federal (157,626) (83,080) 47,717 U.S. State 19,739 (35,220) 31,375 (137,887) (118,300) 79,092 Total Income Tax (Benefit) Expense $ (137,870) $ (174,087) $ 27,736 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred taxes are as follows: December 31, 2021 2020 Deferred Tax Assets: Gas Derivatives $ 262,658 $ — Net Operating Loss- Federal 209,731 215,936 Net Operating Loss - State 128,592 129,641 Foreign Tax Credit 39,404 43,194 Federal Tax Credits 33,034 — Gas Well Closing 25,682 24,251 Operating Lease Liabilities 14,322 28,085 Salary Retirement 11,504 11,478 Equity Compensation 5,838 6,639 Other 8,613 9,416 Total Deferred Tax Assets 739,378 468,640 Valuation Allowance (151,798) (123,098) Net Deferred Tax Assets 587,580 345,542 Deferred Tax Liabilities: Property, Plant and Equipment (749,811) (649,917) Investment in Partnership (133,287) (85,882) Discount on Convertible Notes (15,864) (18,097) Operating Lease Right-of-Use Assets (14,985) (28,287) Advance Gas Royalties (1,842) (2,519) Gas Derivatives — (26,882) Other (392) (211) Total Deferred Tax Liabilities (916,181) (811,795) Net Deferred Tax Liability $ (328,601) $ (466,253) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation, stated as a percentage of pretax income, of the United States statutory federal income tax rate to CNX's effective tax rate: For the Years Ended December 31, 2021 2020 2019 Amount Percent Amount Percent Amount Percent Statutory U.S. Federal Income Tax Rate $ (133,668) 21.0 % $ (126,595) 21.0 % $ 12,534 21.0 % Net Effect of State Income Taxes (36,300) 5.7 (32,336) 5.5 1,333 2.2 Non-Controlling Interest — — (11,556) 1.9 (23,662) (39.6) Uncertain Tax Positions 35,914 (5.6) 375 (0.1) — — Accrual to Tax Return Reconciliation (3) — 13 — 603 1.0 Effect of Equity Compensation 2,465 (0.4) 4,311 (0.7) 8,771 14.7 Effect of Change in State Valuation Allowance 33,100 (5.2) (2,004) 0.3 33,238 55.6 Effect of Change in Federal Valuation Allowance (4,400) 0.7 48 — (2,640) (4.4) Other Deferred Adjustments (4,401) 0.7 1,166 (0.2) (1,691) (2.8) Effect of State Apportionment Changes 22,458 (3.5) (1,450) 0.2 (3,842) (6.4) Effect of Federal Tax Credits (53,269) 8.3 (6,284) 1.0 2,881 4.8 Other 234 — 225 — 211 0.4 Income Tax (Benefit) Expense / Effective Rate $ (137,870) 21.7 % $ (174,087) 28.9 % $ 27,736 46.5 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Years Ended December 31, 2021 2020 Balance at Beginning of Period $ 31,891 $ 31,516 Increase in Unrecognized Tax Benefits Resulting from Tax Positions Taken During Prior Periods 38,735 1,726 Reduction in Unrecognized Tax Benefits Because of the Lapse of the Applicable Statute of Limitations (2,821) (1,351) Balance at End of Period $ 67,805 $ 31,891 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in Asset Retirement Obligation | The reconciliation of changes in asset retirement obligations is as follows: December 31, 2021 2020 Balance, Beginning of Year $ 93,168 $ 68,454 Obligations Divested (124) (703) Accretion Expense 9,233 11,067 Obligations Incurred 3,237 2,806 Obligations Settled (9,501) (7,905) Revisions in Estimated Cash Flows — 19,449 Balance, End of Year $ 96,013 $ 93,168 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives or lease terms, generally as follows: Years Buildings and Improvements 10 to 45 Machinery and Equipment 3 to 25 Gathering and Transmission 30 to 40 Leasehold Improvements Life of Lease December 31, 2021 2020 Intangible Drilling Cost $ 5,247,800 $ 4,965,252 Gas Gathering Equipment 2,483,561 2,510,917 Proved Gas Properties 1,312,706 1,253,094 Gas Wells and Related Equipment 1,202,731 1,120,061 Unproved Gas Properties 730,400 725,705 Surface Land and Other Equipment 194,655 199,322 Other 190,249 189,645 Total Property, Plant and Equipment 11,362,102 10,963,996 Less: Accumulated Depreciation, Depletion and Amortization 4,372,619 3,938,451 Total Property, Plant and Equipment - Net $ 6,989,483 $ 7,025,545 |
Schedule of Amortization Expense Per Unit of Production | December 31, 2021 2020 Unproved Gas Properties $ 730,400 $ 725,705 Advance Royalties 6,885 9,676 Total $ 737,285 $ 735,381 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill consist of the following activity: For the Years Ended December 31, 2021 2020 Carrying Amount, Beginning of Period $ 323,314 $ 796,359 Impairment — 473,045 Carrying Amount, End of Period $ 323,314 $ 323,314 |
Schedule of Finite-Lived Intangible Assets | The carrying amount and accumulated amortization of other intangible assets consist of the following: December 31, 2021 2020 Other Intangible Assets: Gross Amortizable Asset - Customer Relationships $ 109,752 $ 109,752 Less: Accumulated Amortization - Customer Relationships 26,209 19,657 Total Other Intangible Assets, net $ 83,543 $ 90,095 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | December 31, 2021 2020 Royalties $ 152,498 $ 72,401 Accrued Interest 36,035 26,549 Short-Term Incentive Compensation 19,591 20,340 Deferred Revenue 18,984 10,986 Transportation Charges 15,808 15,969 Accrued Other Taxes 12,681 10,580 Accrued Payroll & Benefits 5,747 5,009 Litigation Contingency 1,200 2,025 Purchased Gas Payable 757 1,528 Other 15,435 23,144 Current Portion of Long-Term Liabilities: Asset Retirement Obligations 7,154 8,455 Salary Retirement 1,842 1,787 Total Other Accrued Liabilities $ 287,732 $ 198,773 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Debt, Other Disclosures [Abstract] | |
Schedule of Long-Term Debt | December 31, 2021 2020 Senior Notes due March 2027 at 7.25% (Principal of $700,000 plus Unamortized Premium of $5,609 and $6,686, respectively) $ 705,609 $ 706,686 Senior Notes due January 2029 at 6.00%, Issued at Par Value 500,000 500,000 CNX Midstream Partners LP Senior Notes due April 2030 at 4.75% (Principal of $400,000 less Unamortized Discount of $4,808 at December 31, 2021)* 395,192 — Convertible Senior Notes due May 2026 at 2.25% (Principal of $345,000 less Unamortized Discount and Issuance Costs of $91,284 and $107,735, respectively) 253,716 237,265 CNX Revolving Credit Facility 192,000 160,800 CNX Midstream Partners LP Revolving Credit Facility* 185,000 291,000 CNX Midstream Partners LP Senior Notes due March 2026 at 6.50% (Principal of $400,000 less Unamortized Discount of $3,875 at December 31, 2020) — 396,125 Cardinal States Gathering Company Credit Facility maturing in March 2028 (Principal of $114,985 less Unamortized Discount of $1,126 at December 31, 2020) — 113,859 CSG Holdings II LLC Credit Facility maturing in March 2027 (Principal of $45,559 less Unamortized Discount of $441 at December 31, 2020) — 45,118 Less: Unamortized Debt Issuance Costs 17,396 26,852 2,214,121 2,424,001 Less: Current Portion — 22,574 Long-Term Debt $ 2,214,121 $ 2,401,427 *CNX is not a guarantor of CNXM's 4.75% Senior Notes due April 2030 or CNXM's Credit Facility. |
Schedule of Maturities of Long-Term Debt | At December 31, 2021, annual undiscounted maturities of CNX and CNXM long-term debt during the next five years and thereafter are as follows: Year ended December 31, Amount 2022 $ — 2023 — 2024 — 2025 — 2026 722,000 Thereafter 1,600,000 Total Long-Term Debt Maturities $ 2,322,000 |
Convertible Debt | The net carrying amount of the liability and equity components of the Convertible Notes was as follows: December 31, 2021 2020 Liability Component: Principal $ 345,000 $ 345,000 Unamortized Discount (85,950) (101,367) Unamortized Issuance Costs (5,334) (6,368) Net Carrying Amount $ 253,716 $ 237,265 Equity Component, net of Purchase Discounts and Issuance Costs $ 78,284 $ 78,317 Interest expense related to the Convertible Notes is as follows: For the Years Ended December 31, 2021 2020 Contractual Interest Expense $ 7,762 $ 5,175 Amortization of Debt Discount 15,417 9,516 Amortization of Issuance Costs 1,034 655 Total Interest Expense $ 24,213 $ 15,346 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease cost were as follows: For the Years Ended December 31, 2021 2020 2019 Operating Lease Cost $ 60,364 $ 74,703 $ 73,809 Finance Lease Cost: Amortization of Right-of-Use Assets 1,577 4,959 5,242 Interest on Lease Liabilities 123 739 1,241 Short-term Lease Cost 8,589 3,252 5,547 Variable Lease Cost* 7,100 9,634 17,337 Total Lease Cost $ 77,753 $ 93,287 $ 103,176 *Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost. Lease terms and discount rates are as follows: For the Years Ended December 31, 2021 2020 2019 Weighted Average Remaining Lease Term (years): Operating Leases 6.20 4.68 4.39 Finance Leases 3.56 1.37 2.16 Weighted Average Discount Rate: Operating Leases 4.84 % 4.40 % 4.96 % Finance Leases 1.72 % 6.33 % 6.92 % |
Schedule of Balance Sheet Information | Amounts recognized in the Consolidated Balance Sheets are as follows: December 31, 2021 2020 Operating Leases: Operating Lease Right-of-Use Asset $ 56,022 $ 108,683 Current Portion of Operating Lease Obligations $ 22,940 $ 52,575 Operating Lease Obligations 33,672 53,235 Total Operating Lease Liabilities $ 56,612 $ 105,810 Finance Leases: Property, Plant and Equipment $ 5,613 $ 72,653 Less—Accumulated Depreciation, Depletion and Amortization 3,840 67,508 Property, Plant and Equipment—Net $ 1,773 $ 5,145 Current Portion of Finance Lease Obligations $ 555 $ 6,876 Finance Lease Obligations 1,218 1,057 Total Finance Lease Liabilities $ 1,773 $ 7,933 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2021 2020 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating Cash Flows for Operating Leases $ 56,966 $ 62,610 $ 66,827 Operating Cash Flows for Finance Leases $ 123 $ 739 $ 1,241 Financing Cash Flows for Finance Leases $ 2,785 $ 7,155 $ 7,149 Right-of-Use Assets Obtained in Exchange for Lease Obligations: Operating Leases $ 4,010 $ 4,027 $ 15,347 Finance Leases $ 772 $ 257 $ 1,846 |
Maturity of Lease Liability, Operating | Maturities of lease liabilities are as follows: Operating Finance Leases Leases Year Ended December 31, 2022 $ 25,008 $ 585 2023 5,453 611 2024 5,433 324 2025 4,824 209 2026 4,722 148 Thereafter 21,275 2 Total Lease Payments 66,715 1,879 Less: Interest 10,103 106 Present Value of Lease Liabilities $ 56,612 $ 1,773 |
Maturity of Lease Liability, Financing | Maturities of lease liabilities are as follows: Operating Finance Leases Leases Year Ended December 31, 2022 $ 25,008 $ 585 2023 5,453 611 2024 5,433 324 2025 4,824 209 2026 4,722 148 Thereafter 21,275 2 Total Lease Payments 66,715 1,879 Less: Interest 10,103 106 Present Value of Lease Liabilities $ 56,612 $ 1,773 |
Pension (Tables)
Pension (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | The reconciliation of changes in the benefit obligation, plan assets and funded status of the pension benefits is as follows: December 31, 2021 2020 Change in Benefit Obligation: Benefit Obligation at Beginning of Period $ 44,076 $ 40,196 Service Cost — 247 Interest Cost 855 1,179 Actuarial (Gain) Loss (161) 4,098 Benefits and Other Payments (1,780) (1,644) Benefit Obligation at End of Period $ 42,990 $ 44,076 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Period $ — $ — Company Contributions 1,780 1,644 Benefits and Other Payments (1,780) (1,644) Fair Value of Plan Assets at End of Period $ — $ — Funded Status: Current Liabilities $ (1,842) $ (1,787) Noncurrent Liabilities (41,148) (42,289) Net Obligation Recognized $ (42,990) $ (44,076) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net Actuarial Loss $ 18,401 $ 19,075 Prior Service Cost 1,284 1,506 Total 19,685 20,581 Less: Tax Benefit 5,162 5,397 Net Amount Recognized $ 14,523 $ 15,184 |
Schedule of Defined Benefit Plans Disclosures | The components of the net periodic benefit cost are as follows: For the Years Ended December 31, 2021 2020 2019 Components of Net Periodic Benefit Cost: Service Cost $ — $ 247 $ 209 Interest Cost 855 1,179 1,338 Amortization of Prior Service Cost (Credit) 222 221 (17) Recognized Net Actuarial Loss 513 383 242 Net Periodic Benefit Cost $ 1,590 $ 2,030 $ 1,772 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table provides information related to the pension plan with an accumulated benefit obligation in excess of plan assets: As of December 31, 2021 2020 Projected Benefit Obligation $ 42,990 $ 44,076 Accumulated Benefit Obligation $ 42,990 $ 43,886 Fair Value of Plan Assets $ — $ — |
Schedule of Assumptions Used | The weighted-average assumptions used to determine benefit obligations are as follows: As of December 31, 2021 2020 Discount Rate 2.84 % 2.47 % Rate of Compensation Increase — % — % Interest Credited Rate 2.64 % 2.26 % The discount rates are determined using a Company-specific yield curve model (above-mean) developed with the assistance of an external actuary. The Company-specific yield curve models (above-mean) use a subset of the expanded bond universe to determine the Company-specific discount rate. Bonds used in the yield curve are rated AA by Moody's or Standard & Poor's as of the measurement date. The yield curve models parallel the plans' projected cash flows, and the underlying cash flows of the bonds included in the models exceed the cash flows needed to satisfy the Company plans. The weighted-average assumptions used to determine net periodic benefit cost are as follows: For the Years ended December 31, 2021 2020 2019 Discount Rate 2.47 % 3.36 % 4.37 % Rate of Compensation Increase — % — % 3.63 % Interest Credited Rate 2.71 % 2.47 % 3.39 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: Pension Year ended December 31, Benefits 2022 $ 1,842 2023 $ 1,916 2024 $ 1,986 2025 $ 2,066 2026 $ 2,120 Year 2027-2031 $ 11,802 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Share-based Payment Award, Options Granted, Assumptions and Weighted Average Fair Value | The total fair value of options granted during the years ended December 31, 2020 and 2019 was $1,066 and $50, respectively, based on the following assumptions and weighted average fair values: December 31, 2020 2019 Weighted Average Fair Value of Grants $ 3.56 $ 3.48 Risk-free Interest Rate 1.61 % 2.13 % Expected Dividend Yield — % — % Expected Forfeiture Rate — % — % Expected Volatility 55.33 % 43.60 % Expected Term in Years 5.11 6.50 |
Share-based Compensation, Stock and Performance Options Rollforward | A summary of the status of stock options granted is presented below: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term (in Value (in Shares Price years) thousands) Outstanding at December 31, 2020 4,200,509 $ 15.32 Granted — $ — Exercised (704,105) $ 7.28 Forfeited (3,410) $ 10.53 Expired (502,900) $ 42.07 Outstanding at December 31, 2021 2,990,094 $ 12.72 3.79 $ 12,975 Exercisable at December 31, 2021 2,814,288 $ 12.86 3.53 $ 12,402 |
Schedule of Nonvested Restricted Stock Units Activity | The following table represents the nonvested restricted stock units and their corresponding fair value (based upon the closing share price) at the date of grant: Number of Weighted Average Shares Grant Date Fair Value Nonvested at December 31, 2020 1,871,127 $10.10 Granted 1,110,713 $11.35 Vested (866,260) $10.68 Forfeited (77,603) $9.68 Nonvested at December 31, 2021 2,037,977 $10.55 |
Schedule of Nonvested Performance-based Units Activity | The following table represents the nonvested performance share units and their corresponding fair value (based upon the Monte Carlo Methodology for market based awards and the stock price on the date of grant for performance based awards) on the date of grant: Number of Weighted Average Shares Grant Date Fair Value Nonvested at December 31, 2020 1,767,438 $13.85 Granted 862,949 $8.85 Issued 111,231 $20.79 Vested (291,653) $21.28 Forfeited (129,942) $15.68 Nonvested at December 31, 2021 2,320,023 $11.20 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table shows cash paid (received): For the Years Ended December 31, 2021 2020 2019 Interest (Net of Amounts Capitalized) $ 123,466 $ 141,992 $ 143,111 Income Taxes $ — $ (118,125) $ (138,409) |
Concentration of Credit Risk _2
Concentration of Credit Risk and Major Customers - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Concentration of credit risk is summarized below: December 31, 2021 2020 Gas Wholesalers $ 288,918 $ 133,253 NGL, Condensate & Processing Facilities 32,006 7,008 Other 9,282 5,752 Allowance for Credit Losses (84) (84) Total Accounts Receivable Trade $ 330,122 $ 145,929 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The financial instrument measured at fair value on a recurring basis is summarized below: Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Gas Derivatives $ — $ (976,170) $ — $ — $ 117,545 $ — Interest Rate Swaps $ — $ (5,786) $ — $ — $ (14,270) $ — |
Fair Value, by Balance Sheet Grouping | The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Cash and Cash Equivalents (Excluding Restricted Cash) $ 3,565 $ 3,565 $ 15,617 $ 15,617 Restricted Cash* $ — $ — 5,982 5,982 Long-Term Debt (Excluding Debt Issuance Costs) $ 2,231,517 $ 2,483,019 $ 2,450,853 $ 2,638,251 *The December 31, 2020 restricted cash balance includes $735 and $5,247 located in current assets and other non-current assets, respectively, in the Consolidated Balance Sheets. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The total notional amounts of CNX's derivative instruments were as follows: December 31, Forecasted to 2021 2020 Settle Through Natural Gas Commodity Swaps (Bcf) 1,686.1 1,256.9 2027 Natural Gas Basis Swaps (Bcf) 1,233.3 1,294.1 2027 Interest Rate Swaps $ 410,000 $ 569,972 2024 |
Schedule of Derivative Liabilities at Fair Value | The gross fair value of CNX's derivative instruments was as follows: December 31, 2021 2020 Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 92 $ 53,668 Basis Only Swaps 94,682 30,848 Interest Rate Swaps 228 141 Total Current Assets $ 95,002 $ 84,657 Other Non-Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 12,419 $ 134,661 Basis Only Swaps 119,077 52,903 Interest Rate Swaps 498 673 Total Other Non-Current Assets $ 131,994 $ 188,237 Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 505,460 $ 23,506 Basis Only Swaps 13,206 14,491 Interest Rate Swaps 2,932 4,332 Total Current Liabilities $ 521,598 $ 42,329 Non-Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 642,442 $ 59,388 Basis Only Swaps 41,332 57,150 Interest Rate Swaps 3,580 10,752 Total Non-Current Liabilities $ 687,354 $ 127,290 |
Schedule of Derivative Assets at Fair Value | The gross fair value of CNX's derivative instruments was as follows: December 31, 2021 2020 Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 92 $ 53,668 Basis Only Swaps 94,682 30,848 Interest Rate Swaps 228 141 Total Current Assets $ 95,002 $ 84,657 Other Non-Current Assets: Commodity Derivative Instruments: Commodity Swaps $ 12,419 $ 134,661 Basis Only Swaps 119,077 52,903 Interest Rate Swaps 498 673 Total Other Non-Current Assets $ 131,994 $ 188,237 Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 505,460 $ 23,506 Basis Only Swaps 13,206 14,491 Interest Rate Swaps 2,932 4,332 Total Current Liabilities $ 521,598 $ 42,329 Non-Current Liabilities: Commodity Derivative Instruments: Commodity Swaps $ 642,442 $ 59,388 Basis Only Swaps 41,332 57,150 Interest Rate Swaps 3,580 10,752 Total Non-Current Liabilities $ 687,354 $ 127,290 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The effect of commodity derivative instruments on the Company's Consolidated Statements of Income was as follows: For the Years Ended December 31, 2021 2020 2019 Cash (Paid) Received in Settlement of Commodity Derivative Instruments: Natural Gas: Commodity Swaps $ (596,619) $ 390,547 $ 82,899 Basis Swaps 57,603 70,670 (13,119) Total Cash (Paid) Received in Settlement of Commodity Derivative Instruments (539,016) 461,217 69,780 Unrealized (Loss) Gain on Commodity Derivative Instruments: Natural Gas: Commodity Swaps (1,240,827) (407,308) 406,472 Basis Swaps 147,110 119,073 (100,147) Total Unrealized (Loss) Gain on Commodity Derivative Instruments (1,093,717) (288,235) 306,325 (Loss) Gain on Commodity Derivative Instruments: Natural Gas: Commodity Swaps (1,837,446) (16,761) 489,371 Basis Swaps 204,713 189,743 (113,266) Total (Loss) Gain on Commodity Derivative Instruments $ (1,632,733) $ 172,982 $ 376,105 The effect of interest rate swaps on Interest Expense in the Company's Consolidated Statements of Income was as follows: For the Years Ended December 31, 2021 2020 2019 Cash (Paid) Received in Settlement of Interest Rate Swaps $ (5,574) $ (3,141) $ 223 Unrealized Gain (Loss) on Interest Rate Swaps 8,485 (13,051) (1,219) Gain (Loss) on Interest Rate Swaps $ 2,911 $ (16,192) $ (996) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | At December 31, 2021, CNX has provided the following financial guarantees, unconditional purchase obligations, and letters of credit to certain third-parties as described by major category in the following tables. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments. These amounts have not been reduced for potential recoveries under recourse or collateralization provisions. Generally, recoveries under reclamation bonds would be limited to the extent of the work performed at the time of the default. No amounts related to these unconditional purchase obligations and letters of credit are recorded as liabilities in the financial statements. CNX management believes that the commitments in the following table will expire without being funded, and therefore will not have a material adverse effect on financial condition. Amount of Commitment Expiration Per Period Total Less Than 1-3 Years 3-5 Years Beyond Letters of Credit: Firm Transportation $ 181,194 $ 181,194 $ — $ — $ — Other 2,967 2,967 — — — Total Letters of Credit 184,161 184,161 — — — Surety Bonds: Employee-Related 2,600 2,600 — — — Environmental 11,984 10,524 1,460 — — Financial Guarantees 81,670 81,670 — — — Other 8,834 7,206 1,628 — — Total Surety Bonds 105,088 102,000 3,088 — — Total Commitments $ 289,249 $ 286,161 $ 3,088 $ — $ — |
Unrecorded Unconditional Purchase Obligations Disclosure | As of December 31, 2021, the purchase obligations for each of the next five years and beyond are as follows: Obligations Due Amount Less than 1 year $ 258,573 1 - 3 years 438,563 3 - 5 years 387,027 More than 5 years 896,943 Total Purchase Obligations $ 1,981,106 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Industry segment results for the year ended December 31, 2021 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,988,993 $ 193,578 $ 1,358 $ 2,183,929 (A) Purchased Gas Revenue — — 99,713 99,713 Loss on Commodity Derivative Instruments (492,526) (46,304) (1,093,903) (1,632,733) Other Revenue and Operating Income 81,267 — 24,616 105,883 (B) Total Revenue and Other Operating Income (Loss) $ 1,577,734 $ 147,274 $ (968,216) $ 756,792 Total Operating Expense $ 804,004 $ 117,900 $ 312,970 $ 1,234,874 Earnings (Loss) Before Income Tax $ 773,730 $ 29,374 $ (1,439,617) $ (636,513) Segment Assets $ 6,071,495 $ 1,047,851 $ 981,405 $ 8,100,751 (C) Depreciation, Depletion and Amortization $ 440,024 $ 58,602 $ 16,492 $ 515,118 Capital Expenditures $ 453,603 $ 10,880 $ 1,378 $ 465,861 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $334,407 to Citadel Energy Marketing LLC and $235,760 to Direct Energy Business Marketing LLC, each of which comprises over 10% of revenue from contracts with external customers for the period. (B) Includes midstream revenue of $81,267 and equity in earnings of unconsolidated affiliates of $5,780 for Shale and Other, respectively. (C) Includes investments in unconsolidated equity affiliates of $17,301 . Industry segment results for the year ended December 31, 2020 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 781,038 $ 114,366 $ 1,341 $ 896,745 (D) Purchased Gas Revenue — — 105,792 105,792 Gain (Loss) on Commodity Derivative Instruments 337,269 39,884 (204,171) 172,982 (E) Other Revenue and Operating Income 64,710 — 17,749 82,459 (F) Total Revenue and Other Operating Income (Loss) $ 1,183,017 $ 154,250 $ (79,289) $ 1,257,978 Total Operating Expense $ 709,036 $ 127,845 $ 860,863 $ 1,697,744 Earnings (Loss) Before Income Tax $ 473,981 $ 26,405 $ (1,103,217) $ (602,831) Segment Assets $ 6,068,933 $ 1,095,816 $ 877,015 $ 8,041,764 (G) Depreciation, Depletion and Amortization $ 416,441 $ 69,745 $ 15,635 $ 501,821 Capital Expenditures $ 474,545 $ 9,789 $ 2,957 $ 487,291 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $167,390 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (E) Included in Other is a realized gain on commodity derivative instruments of $83,997 related to the monetization of hedges (see Note 19 - Derivative Instruments for more information). (F) Includes midstream revenue of $64,710 and equity in losses of unconsolidated affiliates of $688 for Shale and Other, respectively. (G) Includes investments in unconsolidated equity affiliates of $16,022. Industry segment results for the year ended December 31, 2019 are: Shale Coalbed Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,199,276 $ 163,893 $ 1,156 $ 1,364,325 (H) Purchased Gas Revenue — — 94,027 94,027 Gain on Commodity Derivative Instruments 62,418 7,335 306,352 376,105 Other Revenue and Operating Income 74,314 — 13,678 87,992 (I) Total Revenue and Other Operating Income $ 1,336,008 $ 171,228 $ 415,213 $ 1,922,449 Total Operating Expense $ 787,488 $ 135,778 $ 813,207 $ 1,736,473 Earnings (Loss) Before Income Tax $ 548,520 $ 35,450 $ (524,286) $ 59,684 Segment Assets $ 6,527,245 $ 1,222,005 $ 1,311,556 $ 9,060,806 (J) Depreciation, Depletion and Amortization $ 427,219 $ 73,189 $ 8,055 $ 508,463 Capital Expenditures $ 1,175,091 $ 11,333 $ 6,175 $ 1,192,599 (H) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $214,980 to Direct Energy Business Marketing LLC and $147,540 to NJR Energy Services Company, each of which comprises over 10% of revenue from contracts with external customers for the period. (I) Includes midstream revenue of $74,314 and equity in earnings of unconsolidated affiliates of $2,103 for Shale and Other, respectively. (J) Includes investments in unconsolidated equity affiliates of $16,710. |
Reconciliation of Revenue from Segments to Consolidated | Revenue and Other Operating Income: For the Years Ended December 31, 2021 2020 2019 Total Segment Revenue from Contracts with External Customers $ 2,364,909 $ 1,067,247 $ 1,532,666 (Loss) Gain on Commodity Derivative Instruments (1,632,733) 172,982 376,105 Other Operating Income 24,616 17,749 13,678 Total Consolidated Revenue and Other Operating Income $ 756,792 $ 1,257,978 $ 1,922,449 |
Supplemental Gas Data (unaudi_2
Supplemental Gas Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Extractive Industries [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure | Capitalized Costs: As of December 31, 2021 2020 Intangible Drilling Costs $ 5,247,800 $ 4,965,252 Gas Gathering Assets 2,483,561 2,510,916 Proved Gas Properties 1,312,706 1,253,094 Unproved Gas Properties 730,400 725,705 Gas Wells and Related Equipment 1,202,731 1,120,061 Other Gas Assets 96,279 95,734 Total Property, Plant and Equipment 11,073,477 10,670,762 Accumulated Depreciation, Depletion and Amortization (4,279,070) (3,852,593) Net Capitalized Costs $ 6,794,407 $ 6,818,169 |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | Costs incurred for property acquisition, exploration and development (*): For the Years Ended December 31, 2021 2020 2019 Property Acquisitions: Proved Properties $ 32,355 $ 16,622 $ 36,710 Unproved Properties 20,568 8,060 24,760 Development** 393,641 432,438 1,063,945 Exploration 30,927 33,644 79,855 Total $ 477,491 $ 490,764 $ 1,205,270 __________ (*) Includes costs incurred whether capitalized or expensed. (**) Includes development costs for midstream of $35 million, $67 million and $325 million for 2021, 2020 and 2019, respectively. |
Results of Operations for Oil and Gas Producing Activities Disclosure | Results of Operations for Producing Activities: For the Years Ended December 31, 2021 2020 2019 Natural Gas, NGLs and Oil Revenue $ 2,183,929 $ 896,745 $ 1,364,325 Realized (Loss) Gain on Commodity Derivative Instruments (539,016) 461,217 69,780 Unrealized (Loss) Gain on Commodity Derivative Instruments (1,093,717) (288,235) 306,325 Purchased Gas Revenue 99,713 105,792 94,027 Total Revenue 650,909 1,175,519 1,834,457 Lease Operating Expense 46,256 40,407 65,443 Production, Ad Valorem and Other Fees 34,051 24,196 27,461 Transportation, Gathering and Compression 343,635 285,683 330,539 Purchased Gas Costs 93,776 100,902 90,553 Impairment of Exploration and Production Properties — 61,849 327,400 Impairment of Undeveloped Properties — — 119,429 Exploration Costs 20,626 14,994 44,380 Depreciation, Depletion and Amortization 515,118 501,821 508,463 Total Costs 1,053,462 1,029,852 1,513,668 Pre-tax Operating (Loss) Income (402,553) 145,667 320,789 Income Tax (Benefit) Expense (87,354) 42,098 149,167 Results of Operations for Producing Activities excluding Corporate and Interest Costs $ (315,199) $ 103,569 $ 171,622 |
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure | 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, 2021 2020 2019 Production (MMcfe) 590,248 511,072 539,149 Total Average Sales Price Before Effects of Commodity Derivative Financial Settlements (per Mcfe) $ 3.70 $ 1.75 $ 2.53 Average Effects of Commodity Derivative Financial Settlements (per Mcfe) $ (0.98) $ 0.78 $ 0.14 Total Average Sales Price Including Effects of Commodity Derivative Financial Settlements (per Mcfe) $ 2.79 $ 2.49 $ 2.66 Average Lifting Costs, Excluding Ad Valorem and Severance Taxes (per Mcfe) $ 0.08 $ 0.08 $ 0.12 |
Schedule of Gas and Oil Acreage | The following table sets forth, at December 31, 2021, the number of producing wells, developed acreage and undeveloped acreage: Gross(1) Net(2) Producing Gas Wells (including Gob Wells) - Working Interest 4,716 4,432 Producing Gas Wells - Royalty Interest 2,031 — Producing Oil Wells - Royalty Interest 150 — Acreage Position: Proved Developed Acreage 376,850 376,850 Proved Undeveloped Acreage 41,605 41,605 Unproved Acreage 4,756,680 3,442,159 Total Acreage 5,175,135 3,860,614 ____________ (1) All of our acreage identified as proved developed and undeveloped is controlled fully by CNX through ownership of a 100% working interest. |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The gas reserves estimates are as follows: Condensate Consolidated Natural Gas NGLs & Crude Oil Operations (MMcf) (Mbbls) (Mbbls) (MMcfe) Balance December 31, 2018 (a) 7,436,338 65,904 8,261 7,881,335 Revisions (b) (521,617) 5,926 (5,418) (518,570) Price Changes (40,773) (740) (5) (45,246) Extensions and Discoveries (c) 1,569,813 10,182 2,732 1,647,297 Production (505,355) (5,428) (204) (539,149) Balance December 31, 2019 (a) 7,938,406 75,844 5,366 8,425,667 Revisions (d) 407,836 51,857 3,525 740,129 Price Changes (1,019,523) (50,456) (4,946) (1,351,934) Extensions and Discoveries (c) 2,188,773 9,299 400 2,246,968 Production (481,426) (4,677) (264) (511,072) Balance December 31, 2020 (a) 9,034,066 81,867 4,081 9,549,758 Revisions (e) (409,215) 13,655 39 (327,050) Price Changes 82,248 692 22 86,532 Extensions and Discoveries (c) 832,696 12,047 294 906,738 Production (551,988) (5,976) (400) (590,248) Balance December 31, 2021 (a) 8,987,807 102,285 4,036 9,625,730 Proved developed reserves: December 31, 2019 4,473,534 59,800 1,087 4,838,858 December 31, 2020 4,939,283 42,204 1,207 5,199,748 December 31, 2021 5,569,332 53,204 2,843 5,905,611 Proved undeveloped reserves: December 31, 2019 3,464,873 16,044 4,278 3,586,809 December 31, 2020 4,094,783 39,664 2,874 4,350,010 December 31, 2021 3,418,475 49,081 1,193 3,720,119 __________ (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 downward revisions in 2019 are due to changes in our five-year development plan due to increased dry gas investment which increased dry gas proved undeveloped reserves and decreased wet gas investment which lowered wet gas proved undeveloped reserves. The investment shift was a result of a significant decrease in forecasted liquids price realizations in the five-year plan. These five-year plan changes resulted in the removal of 872 Bcfe in reserves for wet gas investment. There was additionally a reduction of 304 Bcfe related to removal of proved undeveloped locations removed from our plans due to the SEC five-year development rule. These downward revisions were partially offset by efficiencies in operations investment in dry gas properties which increased reserves by 657 Bcfe. (c) Extensions and Discoveries in 2019, 2020, and 2021 are due to the addition of wells on the Company’s Shale acreage more than one offset location away with continued use of reliable technology. The Company uses reliable technologies when assigning reserves to undeveloped locations, including wire line open-hole log data, performance data, geological log cross sections, core data and statistical analysis. The statistical methods use production performance of analog wells and include data from operated and competitor wells. We also use geophysical data that includes data from our wells, published documents, state data-sits and data exchanges to confirm continuity of the formation. Total proved extensions and discoveries are a combination of proved developed and proved undeveloped reserves; and, extensions and discoveries for proven developed reserves are associated with non-operated assets and exploratory wells. In 2021, 2020 and 2019, the Company added 26 Bcfe, 70 Bcfe and 77 Bcfe, respectively, related to exploratory and non-operated wells. (d) Upward revisions in 2020 are due to performance revisions of 579 Bcfe related to production performance and an 853 Bcfe increase in reserves due to a decrease in operating costs in 2020. These upward revisions were partially offset by negative revisions of 677 Bcfe due to changes in our development plan related to the removal of four Utica wells and 23 Marcellus wells from our development plan. (e) The downward revisions in 2021 are partly due to changes in our five-year development plan that are driven by acreage consolidation initiatives. These initiatives resulted in 267 Bcfe being removed. Additional downward revisions, of 356 Bcfe are due to additional changes in our 5 year development plans from continued focus on optimizing and maximizing value of our assets. The remaining 20 Bcfe was removed due to risk in well development. 60 Bcfe was removed due to the 5 year rule. Offsetting these negative revisions are positive performance revisions of 46 Bcfe associated with Proved Developed Producing assets and 331 Bcfe related to increase performance in Proved Undeveloped assets. For the Year Ended December 31, 2021 Proved Undeveloped Reserves (MMcfe) Beginning Proved Undeveloped Reserves 4,350,010 Undeveloped Reserves Transferred to Developed (a) (1,133,110) Revisions Due to 5 Year Rule (b) (59,948) Price Revisions (4,939) Revisions Due to Plan Changes (c) (643,994) Revisions Due to Changes Related to Well Performance (d) 331,135 Extension and Discoveries (e) 880,965 Ending Proved Undeveloped Reserves(f) 3,720,119 _________ (a) During 2021, various exploration and development drilling and evaluations were completed. Approximately, $248,232 of capital was spent in the year ended December 31, 2021 related to undeveloped reserves that were transferred to developed. (b) Due to the 5 Year Rule, 60 Bcfe of reserves were removed. (c) The downward revisions for 2021 plan changes is due to the removal of 267 Bcfe of reserves related acreage consolidation initiatives. We also had 356 Bcfe which were removed from our 5 year development plan from our continued focus on optimizing the development timing of our assets. The remaining 20 Bcfe was removed due to risk in well development. (d) The upward revisions of 331 Bcfe are due to increased ethane extractions for our undeveloped locations related to increased production performance. (e) Extensions and discoveries are due mainly to the addition of 476 Bcfe related to 29 Marcellus wells within our Southwest Pennsylvania, Central Pennsylvania and West Virginia operations and 405 Bcfe of 16 Utica wells within our Central Pennsylvania and Southwest Pennsylvania operations. The Company uses reliable technologies when assigning reserves to undeveloped locations, including wire line open-hole log data, performance data, geological log cross sections, core data and statistical analysis. The statistical methods use production performance of analog wells and include data from operated and competitor wells. We also use geophysical data that includes data from our wells, published documents, state data-sites and data exchanges to confirm continuity of the formation. |
Schedule of Aging of Capitalized Exploratory Well Costs | The following table indicates the changes to the Company’s suspended exploratory well costs: For the Years Ended December 31, 2021 2020 2019 Balance, Beginning of Period $ 9,062 $ 8,984 $ 8,178 Additions to Capitalized Exploratory Well Costs Pending the Determination of Proved Reserves — 28,336 66,409 Reclassifications to Wells, Facilities and Equipment Based on the Determination of Proved Reserves — (28,258) (65,603) Capitalized Exploratory Well Costs Charged to Expense (9,062) — — Balance, End of Period $ — $ 9,062 $ 8,984 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The standardized measure is intended to provide a better means for comparing the value of CNX proved reserves at a given time with those of other gas producing companies than is provided by a comparison of raw proved reserve quantities. December 31, 2021 2020 2019 Future Cash Flows (a) Revenues $ 31,838,532 $ 16,577,563 $ 19,489,588 Production Costs (8,246,671) (6,071,763) (7,903,120) Development Costs (b) (1,735,784) (1,957,519) (1,121,073) Income Tax Expense (5,838,632) (2,235,205) (2,720,994) Future Net Cash Flows 16,017,445 6,313,076 7,744,401 Discounted to Present Value at a 10% Annual Rate (10,135,869) (3,677,340) (4,673,932) Total Standardized Measure of Discounted Net Cash Flows $ 5,881,576 $ 2,635,736 $ 3,070,469 _________ (a) For 2021, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2021, adjusted for energy content and a regional price differential. For 2021, this adjusted natural gas price was $3.19 per Mcf, the adjusted oil price was $55.72 per barrel and the adjusted NGL price was $28.44 per barrel. In 2020, as the result of the CNXM take-in transaction (see Note 4 - Acquisitions and Dispositions), there was a change in production costs and development costs. Historically the production costs included contractual CNXM rates but in 2020 this was replaced with actual operating costs of the midstream infrastructure. Additionally, our development costs in 2020 include capital related to connecting undeveloped Shale wells to the midstream gathering systems; in prior years this was captured within the CNXM contractual rate within production costs. These changes resulted in an increase of $932 million to the prior year Standardized Measure of Discounted Net Cash Flows. For 2020, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2020, adjusted for energy content and a regional price differential. For 2020, this adjusted natural gas price was $1.70 per Mcf, the adjusted oil price was $35.61 per barrel and the adjusted NGL price was $13.18 per barrel. For 2019, the future cash flows were computed using unweighted arithmetic averages of the closing prices on the first day of each month during 2019, adjusted for energy content and a regional price differential. For 2019, this adjusted natural gas price was $2.24 per Mcf, the adjusted oil price was $44.31 per barrel and the adjusted NGL price was $19.10 per barrel. (b) Development costs for 2021 include $405,700 of plugging and abandonment costs and $185,074 of Midstream capital on an undiscounted pre-tax basis. On a PV-10 pre-tax discounted basis, these amounts equate to $7,166 and $154,200, respectively. Development costs for 2020 include $402,174 of plugging and abandonment costs and $286,724 of Midstream capital on an undiscounted pre-tax basis. On a PV-10 pre-tax discounted basis, these amounts equate to $18,357 and $231,512, respectively. The increase from 2019 was primarily due to the addition of Midstream capital as a result of the Merger that occurred on September 28, 2020 (See Note 4 - Acquisitions and Dispositions). The following are the principal sources of change in the standardized measure of discounted future net cash flows for consolidated operations during: December 31, 2021 2020 2019 Balance at Beginning of Period $ 2,635,736 $ 3,070,469 $ 4,655,457 Net Changes in Sales Prices and Production Costs 5,272,386 (695,216) (2,944,555) Sales Net of Production Costs (1,220,971) (1,007,676) (824,360) Net Change Due to Revisions in Quantity Estimates (334,660) 322,820 (252,796) Net Change Due to Extensions, Discoveries and Improved Recovery 699,710 268,196 654,027 Development Costs Incurred During the Period 393,641 434,273 739,874 Difference in Previously Estimated Development Costs Compared to Actual Costs Incurred During the Period (33,175) (129,642) (323,922) Changes in Estimated Future Development Costs 31,406 (499,316) (24,469) Net Change in Future Income Taxes (1,231,883) 138,404 409,797 Accretion 329,782 390,391 583,320 Timing and Other (660,396) 343,033 398,096 Total Discounted Cash Flow at End of Period $ 5,881,576 $ 2,635,736 $ 3,070,469 |
Significant Accounting Polici_4
Significant Accounting Policies - Basis of Consolidation (Details) - CNXM | Sep. 28, 2020 |
Public Unitholders | |
Business Acquisition [Line Items] | |
Ownership percentage in equity method investment | 46.90% |
CNX | |
Business Acquisition [Line Items] | |
Ownership percentage in equity method investment | 53.10% |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and Cash Equivalents | $ 3,565 | $ 15,617 | $ 16,283 | |
Restricted Cash, Current Portion | 0 | 735 | 0 | |
Restricted Cash, Less Current Portion | 0 | 5,247 | 0 | |
Total Cash, Cash Equivalents, and Restricted Cash | $ 3,565 | $ 21,599 | $ 16,283 | $ 17,198 |
Significant Accounting Polici_6
Significant Accounting Policies - Trade Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, Beginning of Period | $ 84 | $ 0 |
Provision for Expected Credit Losses | 0 | 84 |
Allowance for Credit Losses, End of Period | 84 | 84 |
Other Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, Beginning of Period | 3,248 | 2,463 |
Provision for Expected Credit Losses | 104 | 2,760 |
Write-off of Uncollectible Accounts | (30) | (1,975) |
Allowance for Credit Losses, End of Period | $ 3,322 | $ 3,248 |
Significant Accounting Polici_7
Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, depletion and amortization | $ 515,118 | $ 501,821 | $ 508,463 |
Gas Properties | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation, depletion and amortization | $ 415,069 | $ 400,948 | $ 424,238 |
Buildings and Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 10 years | ||
Buildings and Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 45 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 25 years | ||
Gathering and Transmission | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 30 years | ||
Gathering and Transmission | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 40 years | ||
Purchased Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property, plant and equipment | 7 years |
Significant Accounting Polici_8
Significant Accounting Policies - Impairment of Proved and Unproved Properties (Details) a in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)awell | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)awell | |
Productive Wells [Line Items] | ||||
Impairment of proved and unproved properties | $ 327,400 | $ 0 | $ 61,849 | $ 327,400 |
Impairment of unproved properties | 0 | 0 | 119,429 | |
Exploration and Production Related Other Costs | ||||
Productive Wells [Line Items] | ||||
Exploration expense | $ 20,626 | $ 14,994 | $ 44,380 | |
Marcellus Shale | Central Pennsylvania | ||||
Productive Wells [Line Items] | ||||
Number of operated wells | well | 56 | 56 | ||
Net acres of land | a | 51 | 51 |
Significant Accounting Polici_9
Significant Accounting Policies - Impairment of Goodwill and Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2018 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||||
Impairment | $ 473,045 | $ 0 | $ 473,045 | $ 0 | |
Midstream | |||||
Property, Plant and Equipment [Line Items] | |||||
Goodwill acquired during period | $ 796,359 | ||||
Customer Relationships | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life, customer relationship intangible assets | 17 years |
Significant Accounting Polic_10
Significant Accounting Policies - Investment Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Company's matching contribution, percentage | 6.00% | 6.00% | 6.00% |
Discretionary contributions to the Plan, amount | $ 0 | $ 0 | $ 0 |
Total payment and cost to the Plan | $ 2,937,000 | $ 2,976,000 | $ 3,460,000 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Discretionary contributions to the Plan, percentage | 1.00% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Discretionary contributions to the Plan, percentage | 6.00% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Sep. 28, 2020 | Dec. 31, 2021 | Apr. 30, 2020 |
Business Acquisition [Line Items] | |||
Entity shares issued per acquiree share (in shares) | 0.88 | ||
Convertible Debt | Convertible 2.25% Senior Notes Due 2026 | |||
Business Acquisition [Line Items] | |||
Initial conversion price (in usd per share) | $ 12.84 | $ 12.84 | |
CNXM, CNX Midstream GP LLC, CNX Resources Holding LLC Merger Agreement | |||
Business Acquisition [Line Items] | |||
Entity shares issued per acquiree share (in shares) | 0.88 |
Earnings Per Share - Anti-Dilut
Earnings Per Share - Anti-Dilutive Options and Units Excluded from Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share (in shares) | 6,423,803 | 7,082,480 | 7,659,013 |
Anti-Dilutive Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share (in shares) | 2,990,094 | 4,200,509 | 4,696,264 |
Anti-Dilutive Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share (in shares) | 2,436,846 | 2,160,727 | 1,282,582 |
Anti-Dilutive Performance Share Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share (in shares) | 996,863 | 721,244 | 752,899 |
Anti-Dilutive Performance Share Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from the computation of diluted earnings per share (in shares) | 0 | 0 | 927,268 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net (Loss) Income | $ (498,643) | $ (428,744) | $ 31,948 |
Less: Net Income Attributable to Noncontrolling Interests | 0 | 55,031 | 112,678 |
Net Loss Attributable to CNX Resources Shareholders | $ (498,643) | $ (483,775) | $ (80,730) |
Weighted-Average Shares of Common Stock Outstanding (in shares) | 215,971,381 | 199,225,441 | 190,727,122 |
Effect of Diluted Shares (in shares) | 0 | 0 | 0 |
Weighted-Average Diluted Shares of Common Stock Outstanding (in shares) | 215,971,381 | 199,225,441 | 190,727,122 |
Loss Per Share: | |||
Basic (in usd per share) | $ (2.31) | $ (2.43) | $ (0.42) |
Diluted (in usd per share) | $ (2.31) | $ (2.43) | $ (0.42) |
Earnings Per Share - Shares of
Earnings Per Share - Shares of Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock Outstanding [Roll Forward] | |||
Balance, Beginning of Year (in shares) | 220,440,993 | ||
Balance, End of Year (in shares) | 203,531,320 | 220,440,993 | |
Common Stock | |||
Common Stock Outstanding [Roll Forward] | |||
Balance, Beginning of Year (in shares) | 220,440,993 | 186,642,962 | 198,663,342 |
Issuance Related to Stock-Based Compensation (in shares) | 1,374,925 | 882,335 | 909,107 |
Retirement of Common Stock (in shares) | (18,284,598) | (4,138,527) | (12,929,487) |
Issuance Related to CNXM Merger (in shares) | 0 | 37,054,223 | 0 |
Balance, End of Year (in shares) | 203,531,320 | 220,440,993 | 186,642,962 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms for contract with customers | 25 days |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
(Loss) Gain on Commodity Derivative Instruments | $ (1,632,733) | $ 172,982 | $ 376,105 |
Other Revenue and Operating Income | 105,883 | 82,459 | 87,992 |
Total Revenue and Other Operating Income | 756,792 | 1,257,978 | 1,922,449 |
Total Natural Gas, NGL and Oil Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,183,929 | 896,745 | 1,364,325 |
Natural Gas Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,958,718 | 823,132 | 1,251,013 |
NGL Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 202,670 | 64,138 | 104,139 |
Oil/Condensate Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 22,541 | 9,475 | 9,173 |
Purchased Gas Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 99,713 | $ 105,792 | $ 94,027 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Performance Obligation (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 47,364 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 23,143 |
Remaining performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 12,316 |
Remaining performance obligations, expected timing of satisfaction | 1 year |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Thousands | Sep. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Common stock outstanding (in shares) | 203,531,320 | 220,440,993 | |
Entity shares issued per acquiree share (in shares) | 0.88 | ||
CNXM | |||
Business Acquisition [Line Items] | |||
Common stock outstanding (in shares) | 42,107,071 | ||
CNXM | Public Unitholders | |||
Business Acquisition [Line Items] | |||
Ownership percentage in equity method investment | 46.90% | ||
CNXM | CNX | |||
Business Acquisition [Line Items] | |||
Ownership percentage in equity method investment | 53.10% | ||
CNXM CNX Midstream GP LLC CNX Resources Holding LLC Merger Agreements | |||
Business Acquisition [Line Items] | |||
Number of shares issued in acquisition (in shares) | 37,054,223 | ||
Cash consideration transferred | $ 384,623 | ||
Transaction costs | $ 11,271 |
Stock Repurchase (Details)
Stock Repurchase (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 25, 2021 | Jan. 26, 2021 | |
Equity [Abstract] | |||||
Share repurchase program, authorized amount | $ 750,000,000 | $ 1,900,000,000 | $ 900,000,000 | ||
Amount available under the current stock repurchase program | $ 1,014,424 | ||||
Stock repurchased during period (in shares) | 18,284,598 | 4,138,527 | 12,929,487 | ||
Treasure stock acquired (in usd per share) | $ 13.17 | $ 10.43 | $ 8.91 | ||
Stock repurchased and retired | $ 241,243,000 | $ 43,247,000 | $ 115,477,000 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
U.S. Federal | $ 0 | $ (55,799) | $ (51,243) |
U.S. State | 17 | 12 | (113) |
Current income tax (benefit) | 17 | (55,787) | (51,356) |
Deferred: | |||
U.S. Federal | (157,626) | (83,080) | 47,717 |
U.S. State | 19,739 | (35,220) | 31,375 |
Deferred income tax (benefit) | (137,887) | (118,300) | 79,092 |
Income Tax (Benefit) Expense / Effective Rate | $ (137,870) | $ (174,087) | $ 27,736 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets/Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets: | ||
Gas Derivatives | $ 262,658 | $ 0 |
Net Operating Loss- Federal | 209,731 | 215,936 |
Net Operating Loss - State | 128,592 | 129,641 |
Foreign Tax Credit | 39,404 | 43,194 |
Federal Tax Credits | 33,034 | 0 |
Gas Well Closing | 25,682 | 24,251 |
Operating Lease Liabilities | 14,322 | 28,085 |
Salary Retirement | 11,504 | 11,478 |
Equity Compensation | 5,838 | 6,639 |
Other | 8,613 | 9,416 |
Total Deferred Tax Assets | 739,378 | 468,640 |
Valuation Allowance | (151,798) | (123,098) |
Net Deferred Tax Assets | 587,580 | 345,542 |
Deferred Tax Liabilities: | ||
Property, Plant and Equipment | (749,811) | (649,917) |
Investment in Partnership | (133,287) | (85,882) |
Discount on Convertible Notes | (15,864) | (18,097) |
Operating Lease Right-of-Use Assets | (14,985) | (28,287) |
Advance Gas Royalties | (1,842) | (2,519) |
Gas Derivatives | 0 | (26,882) |
Other | (392) | (211) |
Total Deferred Tax Liabilities | (916,181) | (811,795) |
Net Deferred Tax Liability | $ (328,601) | $ (466,253) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Federal net operating losses | $ 209,731,000 | $ 215,936,000 | |
Valuation allowance on foreign tax credits | 39,404,000 | 43,194,000 | |
Deferred tax asset related to state operating losses | 128,592,000 | 129,641,000 | |
Valuation allowance | 151,798,000 | 123,098,000 | |
Reduction in income tax expense due to non-controlling interest | 0 | 11,556,000 | $ 23,662,000 |
Unrecognized tax benefits that would impact effective tax rate | 67,805,000 | 31,891,000 | |
Increase in unrecognized tax benefits resulting from tax position taken on prior year return | 38,735,000 | 1,726,000 | |
Reduction to unrecognized tax benefits, from position taken on state tax return | 2,821,000 | 1,351,000 | |
Accrued liability relating to uncertain tax positions | 0 | 0 | |
Interest related to income tax deficiencies | 0 | 0 | |
Accrued liabilities for tax penalties | 0 | 0 | |
Foreign Tax Credits | |||
Valuation Allowance [Line Items] | |||
Decrease in valuation allowance | 3,790,000 | ||
State Operating Losses | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | $ 112,298,000 | $ 79,198,000 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amount | |||
Statutory U.S. Federal Income Tax Rate | $ (133,668) | $ (126,595) | $ 12,534 |
Net Effect of State Income Taxes | (36,300) | (32,336) | 1,333 |
Non-Controlling Interest | 0 | (11,556) | (23,662) |
Uncertain Tax Positions | 35,914 | 375 | 0 |
Accrual to Tax Return Reconciliation | (3) | 13 | 603 |
Effect of Equity Compensation | 2,465 | 4,311 | 8,771 |
Effect of Change in State Valuation Allowance | 33,100 | (2,004) | 33,238 |
Effect of Change in Federal Valuation Allowance | (4,400) | 48 | (2,640) |
Other Deferred Adjustments | (4,401) | 1,166 | (1,691) |
Effect of State Apportionment Changes | 22,458 | (1,450) | (3,842) |
Effect of Federal Tax Credits | (53,269) | (6,284) | 2,881 |
Other | 234 | 225 | 211 |
Income Tax (Benefit) Expense / Effective Rate | $ (137,870) | $ (174,087) | $ 27,736 |
Percent | |||
Statutory U.S. Federal Income Tax Rate | 21.00% | 21.00% | 21.00% |
Net Effect of State Income Taxes | 5.70% | 5.50% | 2.20% |
Non-Controlling Interest | 0.00% | 1.90% | (39.60%) |
Uncertain Tax Positions | (5.60%) | (0.10%) | 0.00% |
Accrual to Tax Return Reconciliation | 0.00% | 0.00% | 1.00% |
Effect of Equity Compensation | (0.40%) | (0.70%) | 14.70% |
Effect of Change in State Valuation Allowance | (5.20%) | 0.30% | 55.60% |
Effect of Change in Federal Valuation Allowance | 0.70% | 0.00% | (4.40%) |
Other Deferred Adjustments | 0.70% | (0.20%) | (2.80%) |
Effect of State Apportionment Changes | (3.50%) | 0.20% | (6.40%) |
Effect of Federal Tax Credits | 8.30% | 1.00% | 4.80% |
Other | 0.00% | 0.00% | 0.40% |
Income Tax (Benefit) Expense / Effective Rate | 21.70% | 28.90% | 46.50% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at Beginning of Period | $ 31,891 | $ 31,516 |
Increase in Unrecognized Tax Benefits Resulting from Tax Positions Taken During Prior Periods | 38,735 | 1,726 |
Reduction in Unrecognized Tax Benefits Because of the Lapse of the Applicable Statute of Limitations | (2,821) | (1,351) |
Balance at End of Period | $ 67,805 | $ 31,891 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance, Beginning of Year | $ 93,168 | $ 68,454 |
Obligations Divested | (124) | (703) |
Accretion Expense | 9,233 | 11,067 |
Obligations Incurred | 3,237 | 2,806 |
Obligations Settled | (9,501) | (7,905) |
Revisions in Estimated Cash Flows | 0 | 19,449 |
Balance, End of Year | $ 96,013 | $ 93,168 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Intangible Drilling Cost | $ 5,247,800 | $ 4,965,252 |
Gas Gathering Equipment | 2,483,561 | 2,510,917 |
Proved Gas Properties | 1,312,706 | 1,253,094 |
Gas Wells and Related Equipment | 1,202,731 | 1,120,061 |
Unproved Gas Properties | 730,400 | 725,705 |
Surface Land and Other Equipment | 194,655 | 199,322 |
Other | 190,249 | 189,645 |
Total | 11,362,102 | 10,963,996 |
Less: Accumulated Depreciation, Depletion and Amortization | 4,372,619 | 3,938,451 |
Total Property, Plant and Equipment—Net | $ 6,989,483 | $ 7,025,545 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Assets Amortized by Units of Production (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Unproved Gas Properties | $ 730,400 | $ 725,705 |
Total | 11,362,102 | 10,963,996 |
Assets amortized by units of production | ||
Property, Plant and Equipment [Line Items] | ||
Unproved Gas Properties | 730,400 | 725,705 |
Advance Royalties | 6,885 | 9,676 |
Total | $ 737,285 | $ 735,381 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 323,314 | $ 323,314 | $ 796,359 | |||
Impairment | $ 473,045 | 0 | 473,045 | 0 | ||
Amortization expense | 6,552 | $ 6,552 | $ 6,552 | |||
Estimated annual amortization expense expected, 2022 | 6,552 | |||||
Estimated annual amortization expense expected, 2023 | 6,552 | |||||
Estimated annual amortization expense expected, 2024 | 6,552 | |||||
Estimated annual amortization expense expected, 2025 | 6,552 | |||||
Estimated annual amortization expense expected, 2026 | $ 6,552 | |||||
CNX Gathering | ||||||
Goodwill [Line Items] | ||||||
Ownership percentage in equity method investment | 50.00% | |||||
Customer Relationships | ||||||
Goodwill [Line Items] | ||||||
Useful life, customer relationship intangible assets | 17 years | |||||
Midstream Acquisition | ||||||
Goodwill [Line Items] | ||||||
Cash consideration transferred | $ 305,000 | |||||
Fair value of equity interest in acquiree | $ 799,033 | |||||
Goodwill | $ 796,359 | |||||
Other intangible assets | $ 128,781 | |||||
Impairment | $ 473,045 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||||
Carrying Amount, Beginning of Period | $ 796,359 | $ 323,314 | $ 796,359 | |
Impairment | $ 473,045 | 0 | 473,045 | $ 0 |
Carrying Amount, End of Period | $ 323,314 | $ 323,314 | $ 796,359 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross Amortizable Asset - Customer Relationships | $ 109,752 | $ 109,752 |
Less: Accumulated Amortization - Customer Relationships | 26,209 | 19,657 |
Total Other Intangible Assets, net | $ 83,543 | $ 90,095 |
Revolving Credit Facilities (De
Revolving Credit Facilities (Details) | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Oct. 06, 2021USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Oct. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Apr. 30, 2019USD ($) | |
Short-term Debt [Line Items] | |||||||||
Debt instrument, face amount | $ 1,000 | ||||||||
Federal Funds Open Rate | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
Federal Funds Open Rate | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
One-Month LIBOR | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||
One-Month LIBOR | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||
One-Month LIBOR | Minimum | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||
One-Month LIBOR | Minimum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||
One-Month LIBOR | Maximum | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||
One-Month LIBOR | Maximum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 2.00% | ||||||||
LIBOR | Minimum | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||
LIBOR | Minimum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 2.00% | ||||||||
LIBOR | Maximum | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 2.75% | ||||||||
LIBOR | Maximum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate (as a percent) | 3.00% | ||||||||
Senior Notes due in January 2029 | Debt Instrument, Issuance, Period Two | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||
Stated rate, debt instrument | 6.00% | ||||||||
Convertible 2.25% Senior Notes Due 2026 | Convertible Debt | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt instrument, face amount | $ 345,000,000 | ||||||||
Stated rate, debt instrument | 2.25% | ||||||||
Revolving Credit Facility | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt instrument, face amount | $ 160,000,000 | ||||||||
Maximum borrowing capacity | $ 2,000,000,000 | $ 1,775,000,000 | |||||||
Initial borrowing base | 2,000,000,000 | $ 1,775,000,000 | $ 1,775,000,000 | $ 1,900,000,000 | |||||
Elected commitments | 1,300,000,000 | ||||||||
Percentage of aggregate commitments available under credit facility | 20.00% | ||||||||
Maximum net leverage ratio | 3.50 | ||||||||
Minimum current ratio | 1 | ||||||||
Borrowings outstanding | $ 192,000,000 | $ 160,800,000 | |||||||
Letters of credit outstanding | 184,131,000 | 185,272,000 | |||||||
Borrowings and issuance of letters of credit remaining capacity | 923,869,000 | 1,428,928,000 | |||||||
Revolving Credit Facility | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | |||||||
Borrowings outstanding | 185,000,000 | 291,000,000 | |||||||
Letters of credit outstanding | $ 30,000 | 30,000 | |||||||
Increase in available borrowings | 250,000,000 | ||||||||
Letters of credit, maximum borrowing capacity | $ 100,000,000 | ||||||||
Interest coverage ratio | 2.50 | ||||||||
Current borrowing capacity | $ 414,970,000 | $ 308,970,000 | |||||||
Revolving Credit Facility | Minimum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Maximum net leverage ratio | 5 | ||||||||
Revolving Credit Facility | Maximum | CNXM | |||||||||
Short-term Debt [Line Items] | |||||||||
Maximum net leverage ratio | 5.25 | ||||||||
Secured leverage ratio | 3.25 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Royalties | $ 152,498 | $ 72,401 |
Accrued Interest | 36,035 | 26,549 |
Short-Term Incentive Compensation | 19,591 | 20,340 |
Deferred Revenue | 18,984 | 10,986 |
Transportation Charges | 15,808 | 15,969 |
Accrued Other Taxes | 12,681 | 10,580 |
Accrued Payroll & Benefits | 5,747 | 5,009 |
Litigation Contingency | 1,200 | 2,025 |
Purchased Gas Payable | 757 | 1,528 |
Other | 15,435 | 23,144 |
Current Portion of Long-Term Liabilities: | ||
Asset Retirement Obligations | 7,154 | 8,455 |
Salary Retirement | 1,842 | 1,787 |
Total Other Accrued Liabilities | $ 287,732 | $ 198,773 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,000 | |||||
Long-term Debt Including Current Maturities | $ 2,214,121,000 | $ 2,424,001,000 | ||||
Less: Unamortized Debt Issuance Costs | 17,396,000 | 26,852,000 | ||||
Less: Current Portion | 0 | 22,574,000 | ||||
Long-Term Debt | $ 2,214,121,000 | 2,401,427,000 | ||||
Senior Notes due March 2027 at 7.25% | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate, debt instrument | 0.0725% | |||||
Debt instrument, face amount | $ 700,000,000 | 700,000,000 | $ 500,000,000 | |||
Debt Instrument, unamortized premium | 5,609,000 | 6,686,000 | ||||
Long-term Debt Including Current Maturities | $ 705,609,000 | 706,686,000 | ||||
Senior Notes due January 2029 at 6.00% | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate, debt instrument | 0.06% | |||||
Long-term Debt Including Current Maturities | $ 500,000,000 | 500,000,000 | ||||
Senior Notes due April 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate, debt instrument | 0.0475% | |||||
Debt instrument, face amount | $ 400,000,000 | |||||
Debt Instrument, unamortized premium | 4,808,000 | |||||
Long-term Debt Including Current Maturities | $ 395,192,000 | 0 | ||||
Senior Notes due May 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate, debt instrument | 0.0225% | |||||
Debt instrument, face amount | $ 345,000,000 | 345,000,000 | ||||
Debt instrument, unamortized discount | 91,284,000 | 107,735,000 | ||||
Long-term Debt Including Current Maturities | $ 253,716,000 | $ 237,265,000 | ||||
Senior Notes due March 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Stated rate, debt instrument | 6.50% | 0.065% | ||||
Debt instrument, face amount | $ 400,000,000 | |||||
Debt instrument, unamortized discount | 3,875,000 | |||||
Long-term Debt Including Current Maturities | $ 0 | 396,125,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 160,000,000 | |||||
Revolving Credit Facility | CNX Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt Including Current Maturities | 192,000,000 | 160,800,000 | ||||
Revolving Credit Facility | CNX Midstream Partners LP Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt Including Current Maturities | 185,000,000 | 291,000,000 | ||||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 175,000,000 | |||||
Credit Facility | Cardinal States Gathering Company Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 114,985,000 | |||||
Debt instrument, unamortized discount | 1,126,000 | |||||
Long-term Debt Including Current Maturities | 0 | 113,859,000 | ||||
Credit Facility | CSG Holdings II LLC Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 45,559,000 | |||||
Debt instrument, unamortized discount | 441,000 | |||||
Long-term Debt Including Current Maturities | $ 0 | $ 45,118,000 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Amount | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 722,000 |
Thereafter | 1,600,000 |
Total Long-Term Debt Maturities | $ 2,322,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020USD ($)day$ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,000 | ||||
Loss (Gain) on Debt Extinguishment | $ 33,737,000 | $ (10,101,000) | $ 7,614,000 | ||
Proceeds from issuance of Convertible Notes | $ 0 | 334,650,000 | 0 | ||
Closing stock price (in usd per share) | $ / shares | $ 13.75 | ||||
Cost incurred with Capped Calls | $ 0 | 35,673,000 | $ 0 | ||
Senior Notes due April 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400,000,000 | ||||
Stated rate, debt instrument | 0.0475% | ||||
Unamortized Discount | $ 5,000,000 | ||||
Senior Notes due March 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400,000,000 | ||||
Stated rate, debt instrument | 6.50% | 0.065% | |||
Purchase of outstanding debt | $ 400,000,000 | ||||
Loss (Gain) on Debt Extinguishment | 25,727,000 | ||||
Cardinal States Gathering Company Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Purchase of outstanding debt | 107,705,000 | ||||
Loss (Gain) on Debt Extinguishment | 5,763,000 | ||||
CSG Holdings II LLC Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Purchase of outstanding debt | 39,726,000 | ||||
Loss (Gain) on Debt Extinguishment | 2,247,000 | ||||
5.875% Senior Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated rate, debt instrument | 5.875% | 5.875% | |||
Purchase of outstanding debt | $ 894,307,000 | $ 400,000,000 | |||
Loss (Gain) on Debt Extinguishment | 7,614,000 | ||||
Senior Notes due in January 2029 | Debt Instrument, Issuance, Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Stated rate, debt instrument | 6.00% | ||||
Senior Notes due March 2027 at 7.25% | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | $ 500,000,000 | ||
Stated rate, debt instrument | 0.0725% | ||||
Convertible 2.25% Senior Notes Due 2026 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 345,000,000 | ||||
Stated rate, debt instrument | 2.25% | ||||
Unamortized Discount | $ 85,950,000 | 101,367,000 | |||
Conversion rate | 77.8816 | ||||
Initial conversion price (in usd per share) | $ / shares | $ 12.84 | $ 12.84 | |||
Amount of if-converted value in excess of principal amount | $ 98,341,000 | ||||
Debt issuance costs gross | $ 10,350,000 | ||||
Convertible 2.25% Senior Notes Due 2026 | Convertible Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Threshold percentage of stock price trigger | 130.00% | ||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Convertible 2.25% Senior Notes Due 2026 | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Threshold percentage of stock price trigger | 98.00% | ||||
Threshold trading days | day | 5 | ||||
Threshold consecutive trading days | day | 10 | ||||
Convertible 2.25% Senior Notes Due 2026, Additional Option To Initial Purchasers | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 45,000,000 | ||||
Convertible 2.25% Senior Notes Due 2026, Liability Component | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs gross | 7,024,000 | ||||
Convertible 2.25% Senior Notes Due 2026, Equity Component | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs gross | 3,326,000 | ||||
Private Placement | Senior Notes due March 2027 at 7.25% | Debt Instrument, Issuance, Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 200,000,000 | ||||
Stated rate, debt instrument | 7.25% | ||||
Unamortized premium | $ 7,000,000 | ||||
Redemption price, percentage of principal amount redeemed | 103.50% | ||||
Effective yield (as a percent) | 6.34% | ||||
Capped Call Transaction | |||||
Debt Instrument [Line Items] | |||||
Cost incurred with Capped Calls | $ 35,673,000 | ||||
Minimum | Capped Call Transaction | Call Option | |||||
Debt Instrument [Line Items] | |||||
Price per share (in usd per share) | $ / shares | $ 12.84 | ||||
Maximum | Capped Call Transaction | Call Option | |||||
Debt Instrument [Line Items] | |||||
Price per share (in usd per share) | $ / shares | $ 18.19 | ||||
Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 175,000,000 | ||||
Credit Facility | Cardinal States Gathering Company Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 114,985,000 | ||||
Maximum borrowing capacity | 125,000,000 | ||||
Credit Facility | CSG Holdings II LLC Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 45,559,000 | ||||
Maximum borrowing capacity | $ 50,000,000 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Convertible Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Principal | $ 2,322,000 | |
Long-term Debt Including Current Maturities | 2,214,121 | $ 2,424,001 |
Equity Component, net of Purchase Discounts and Issuance Costs | (33) | 78,317 |
Convertible Debt | Convertible 2.25% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Principal | 345,000 | 345,000 |
Unamortized Discount | (85,950) | (101,367) |
Unamortized Issuance Costs | (5,334) | (6,368) |
Long-term Debt Including Current Maturities | 253,716 | 237,265 |
Equity Component, net of Purchase Discounts and Issuance Costs | $ 78,284 | $ 78,317 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest (Details) - Convertible Debt - Convertible 2.25% Senior Notes Due 2026 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Contractual Interest Expense | $ 7,762 | $ 5,175 |
Amortization of Debt Discount | 15,417 | 9,516 |
Amortization of Issuance Costs | 1,034 | 655 |
Total Interest Expense | $ 24,213 | $ 15,346 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 20, 2021 |
Lessee, Lease, Description [Line Items] | ||
Lease obligation for lease not yet commenced | $ 10,052 | |
ROU asset for lease not yet commenced | $ 10,052 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease Cost | $ 60,364 | $ 74,703 | $ 73,809 |
Finance Lease Cost: | |||
Amortization of Right-of-Use Assets | 1,577 | 4,959 | 5,242 |
Interest on Lease Liabilities | 123 | 739 | 1,241 |
Short-term Lease Cost | 8,589 | 3,252 | 5,547 |
Variable Lease Cost | 7,100 | 9,634 | 17,337 |
Total Lease Cost | $ 77,753 | $ 93,287 | $ 103,176 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases: | ||
Operating Lease, Right-of-Use Asset | $ 56,022 | $ 108,683 |
Current Portion of Operating Lease Obligations | 22,940 | 52,575 |
Operating Lease Obligations | 33,672 | 53,235 |
Total Operating Lease Liabilities | 56,612 | 105,810 |
Finance Leases: | ||
Property, Plant and Equipment | 5,613 | 72,653 |
Less—Accumulated Depreciation, Depletion and Amortization | 3,840 | 67,508 |
Property, Plant and Equipment—Net | 1,773 | 5,145 |
Current Portion of Finance Lease Obligations | 555 | 6,876 |
Finance Lease Obligations | 1,218 | 1,057 |
Total Finance Lease Liabilities | $ 1,773 | $ 7,933 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | |||
Operating Cash Flows for Operating Leases | $ 56,966 | $ 62,610 | $ 66,827 |
Operating Cash Flows for Finance Leases | 123 | 739 | 1,241 |
Financing Cash Flows for Finance Leases | 2,785 | 7,155 | 7,149 |
Right-of-Use Assets Obtained in Exchange for Lease Obligations: | |||
Operating Leases | 4,010 | 4,027 | 15,347 |
Finance Leases | $ 772 | $ 257 | $ 1,846 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 25,008 | |
2023 | 5,453 | |
2024 | 5,433 | |
2025 | 4,824 | |
2026 | 4,722 | |
Thereafter | 21,275 | |
Total Lease Payments | 66,715 | |
Less: Interest | 10,103 | |
Present Value of Lease Liabilities | 56,612 | $ 105,810 |
Finance Leases | ||
2022 | 585 | |
2023 | 611 | |
2024 | 324 | |
2025 | 209 | |
2026 | 148 | |
Thereafter | 2 | |
Total Lease Payments | 1,879 | |
Less: Interest | 106 | |
Present Value of Lease Liabilities | $ 1,773 | $ 7,933 |
Leases - Terms and Discount Rat
Leases - Terms and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | |||
Operating leases, weighted average remaining lease term | 6 years 2 months 12 days | 4 years 8 months 4 days | 4 years 4 months 20 days |
Finance leases, weighted average remaining lease term | 3 years 6 months 21 days | 1 year 4 months 13 days | 2 years 1 month 28 days |
Operating leases, weighted average discount rate | 4.84% | 4.40% | 4.96% |
Finance leases, weighted average discount rate | 1.72% | 6.33% | 6.92% |
Pension - Reconciliation of Cha
Pension - Reconciliation of Changed in Benefit Obligations, Plan Assets, and Funded Status of Pension Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Benefit Obligation: | |||
Benefit Obligation at Beginning of Period | $ 44,076 | $ 40,196 | |
Service Cost | 0 | 247 | $ 209 |
Interest Cost | 855 | 1,179 | 1,338 |
Actuarial (Gain) Loss | (161) | 4,098 | |
Benefits and Other Payments | (1,780) | (1,644) | |
Benefit Obligation at End of Period | 42,990 | 44,076 | 40,196 |
Change in Plan Assets: | |||
Fair Value of Plan Assets at Beginning of Period | 0 | 0 | |
Company Contributions | 1,780 | 1,644 | |
Benefits and Other Payments | (1,780) | (1,644) | |
Fair Value of Plan Assets at End of Period | 0 | 0 | $ 0 |
Funded Status: | |||
Current Liabilities | (1,842) | (1,787) | |
Noncurrent Liabilities | (41,148) | (42,289) | |
Net Obligation Recognized | (42,990) | (44,076) | |
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Net Actuarial Loss | 18,401 | 19,075 | |
Prior Service Cost | 1,284 | 1,506 | |
Total | 19,685 | 20,581 | |
Net Amount Recognized | 14,523 | 15,184 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Less: Tax Benefit | $ 5,162 | $ 5,397 |
Pension - Components of Net Per
Pension - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Service Cost | $ 0 | $ 247 | $ 209 |
Interest Cost | 855 | 1,179 | 1,338 |
Amortization of Prior Service Cost (Credit) | 222 | 221 | (17) |
Recognized Net Actuarial Loss | 513 | 383 | 242 |
Net Periodic Benefit Cost | $ 1,590 | $ 2,030 | $ 1,772 |
Pension - Accumulated Benefit O
Pension - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
Projected Benefit Obligation | $ 42,990 | $ 44,076 |
Accumulated Benefit Obligation | 42,990 | 43,886 |
Fair Value of Plan Assets | $ 0 | $ 0 |
Pension - Weighted Average Assu
Pension - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount Rate | 2.84% | 2.47% | |
Rate of Compensation Increase | 0.00% | 0.00% | |
Interest Credited Rate | 2.64% | 2.26% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount Rate | 2.47% | 3.36% | 4.37% |
Rate of Compensation Increase | 0.00% | 0.00% | 3.63% |
Interest Credited Rate | 2.71% | 2.47% | 3.39% |
Pension - Expected Future Benef
Pension - Expected Future Benefit Payment (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Retirement Benefits [Abstract] | |
2022 | $ 1,842 |
2023 | 1,916 |
2024 | 1,986 |
2025 | 2,066 |
2026 | 2,120 |
Year 2027-2031 | $ 11,802 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | Sep. 28, 2020shares | Dec. 31, 2021USD ($)employeePopulationshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | May 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for grant (in shares) | shares | 12,140,450 | ||||
Stock-based compensation expense | $ 16,560 | $ 12,897 | $ 36,545 | ||
Deferred tax benefit from stock-based compensation | 4,409 | $ 2,134 | 3,955 | ||
Unrecognized compensation cost related to nonvested awards | $ 13,584 | ||||
Recognition period, weighted average | 1 year 5 months 4 days | ||||
Entity shares issued per acquiree share (in shares) | shares | 0.88 | ||||
Number of distinct employee populations | employeePopulation | 2 | ||||
Options outstanding (in shares) | shares | 2,990,094 | 4,200,509 | |||
Tax impact from option exercises | $ 960 | $ 328 | $ 46 | ||
Minimum | Southeastern Asset Management, Inc. | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ownership percentage in equity method investment | 25.00% | 25.00% | |||
Board Approved Share Increase | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for increase in available for issuance (in shares) | shares | 10,775,000 | ||||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award conversation ratio | 1 | ||||
Award vesting period | 3 years | ||||
Intrinsic value of options exercised | $ 5,027 | 1,263 | $ 175 | ||
Cash received from option exercises | $ 5,087 | 2,052 | 546 | ||
Stock Option | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Options outstanding (in shares) | shares | 451,144 | ||||
Stock Option | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding (in shares) | shares | 2,538,950 | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award conversation ratio | 1.62 | ||||
Vested (in shares) | shares | 291,653 | ||||
Fair value of RSUs granted during the year | $ 7,634 | 3,826 | 6,741 | ||
Fair value of performance share units vested | $ 6,206 | 1,926 | $ 4,668 | ||
Performance Share Units | Accelerated Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | shares | 903,100 | ||||
Performance Share Units | Granted in 2016-2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Performance Share Units | Granted in 2020 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | shares | 866,260 | ||||
Fair value of RSUs granted during the year | $ 12,603 | 10,619 | $ 10,844 | ||
Fair value of restricted stock units vested during the year | $ 9,249 | $ 4,798 | $ 10,391 | ||
Restricted Stock Units | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Restricted Stock Units | Accelerated Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | shares | 473,126 | ||||
Restricted Stock Units and Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Long-term equity-based compensation expense | $ 19,654 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Granted, Assumptions and Weighted Average Fair Value (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options granted during the year | $ 0 | $ 1,066 | $ 50 |
Weighted average fair value of grants (in usd per share) | $ 3.56 | $ 3.48 | |
Risk-free interest rate (as a percent) | 1.61% | 2.13% | |
Expected dividend yield (as a percent) | 0.00% | 0.00% | |
Expected forfeiture rate (as a percent) | 0.00% | 0.00% | |
Expected volatility (as a percent) | 55.33% | 43.60% | |
Expected term in years | 5 years 1 month 9 days | 6 years 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock and Performance Options Rollforward (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 4,200,509 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (704,105) |
Forfeited (in shares) | shares | (3,410) |
Expired (in shares) | shares | (502,900) |
Ending balance (in shares) | shares | 2,990,094 |
Exercisable at December 31, 2021 (in shares) | shares | 2,814,288 |
Weighted Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 15.32 |
Granted (in usd per share) | $ / shares | 0 |
Exercised (in usd per share) | $ / shares | 7.28 |
Forfeited (in usd per share) | $ / shares | 10.53 |
Expired (in usd per share) | $ / shares | 42.07 |
Ending balance (in usd per share) | $ / shares | 12.72 |
Exercisable at December 31, 2020 (in usd per share) | $ / shares | $ 12.86 |
Weighted average remaining contractual term (in years), outstanding | 3 years 9 months 14 days |
Weighted average remaining contractual term (in years), exercisable | 3 years 6 months 10 days |
Aggregate intrinsic value, outstanding | $ | $ 12,975 |
Aggregate intrinsic value, exercisable | $ | $ 12,402 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted and Performance Stock Unit Rollforward (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units | ||
Number of Shares | ||
Beginning nonvested balance (in shares) | 1,871,127 | |
Granted (in shares) | 1,110,713 | |
Vested (in shares) | (866,260) | |
Forfeited (in shares) | (77,603) | |
Ending nonvested balance (in shares) | 2,037,977 | |
Weighted Average Grant Date Fair Value | ||
Beginning nonvested balance (in usd per share) | $ 10.55 | $ 10.10 |
Granted (in usd per share) | 11.35 | |
Vested (in usd per share) | 10.68 | |
Forfeited (in usd per share) | 9.68 | |
Ending nonvested balance (in usd per share) | $ 10.55 | |
Performance Share Units | ||
Number of Shares | ||
Beginning nonvested balance (in shares) | 1,767,438 | |
Granted (in shares) | 862,949 | |
PSUs issued (in shares) | 111,231 | |
Vested (in shares) | (291,653) | |
Forfeited (in shares) | (129,942) | |
Ending nonvested balance (in shares) | 2,320,023 | |
Weighted Average Grant Date Fair Value | ||
Beginning nonvested balance (in usd per share) | $ 11.20 | $ 13.85 |
Granted (in usd per share) | 8.85 | |
PSUs issued (in usd per share) | 20.79 | |
Vested (in usd per share) | 21.28 | |
Forfeited (in usd per share) | 15.68 | |
Ending nonvested balance (in usd per share) | $ 11.20 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Significant Noncash Transactions [Line Items] | |||
Interest (Net of Amounts Capitalized) | $ 123,466 | $ 141,992 | $ 143,111 |
Income Taxes | 0 | (118,125) | (138,409) |
Notes Received from Property Sales | |||
Other Significant Noncash Transactions [Line Items] | |||
Capital expenditures incurred, not yet paid | $ 35,592 | $ 30,982 | $ 43,982 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Major Customers - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Concentration Risk [Line Items] | ||
Total Accounts Receivable Trade | $ 330,122 | $ 145,929 |
Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Allowance for Credit Losses | (84) | (84) |
Total Accounts Receivable Trade | 330,122 | 145,929 |
Accounts Receivable | Customer Concentration Risk | Gas Wholesalers | ||
Concentration Risk [Line Items] | ||
Accounts Receivable Trade Before Allowance for Credit Losses | 288,918 | 133,253 |
Accounts Receivable | Customer Concentration Risk | NGL, Condensate & Processing Facilities | ||
Concentration Risk [Line Items] | ||
Accounts Receivable Trade Before Allowance for Credit Losses | 32,006 | 7,008 |
Accounts Receivable | Customer Concentration Risk | Other | ||
Concentration Risk [Line Items] | ||
Accounts Receivable Trade Before Allowance for Credit Losses | $ 9,282 | $ 5,752 |
Concentration of Credit Risk _4
Concentration of Credit Risk and Major Customers - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Receivables related to contracts with customers | $ 330,122 | $ 145,929 | |
Direct Energy Business Marketing LLC | |||
Concentration Risk [Line Items] | |||
Revenue from contracts with customers | 235,760 | 167,390 | $ 214,980 |
Citadel Energy Marketing LLC | |||
Concentration Risk [Line Items] | |||
Revenue from contracts with customers | 334,407 | ||
NJR Energy Services Company | |||
Concentration Risk [Line Items] | |||
Revenue from contracts with customers | $ 147,540 | ||
Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Receivables related to contracts with customers | 330,122 | 145,929 | |
Accounts Receivable | Customer Concentration Risk | Direct Energy Business Marketing LLC | |||
Concentration Risk [Line Items] | |||
Receivables related to contracts with customers | 38,814 | $ 19,995 | |
Accounts Receivable | Customer Concentration Risk | Citadel Energy Marketing LLC | |||
Concentration Risk [Line Items] | |||
Receivables related to contracts with customers | $ 36,595 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | Gas Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 0 | $ 0 |
Level 1 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Level 2 | Gas Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (976,170) | 117,545 |
Level 2 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (5,786) | (14,270) |
Level 3 | Gas Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Level 3 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | $ 3,565 | $ 15,617 | $ 16,283 |
Long-Term Debt (Excluding Debt Issuance Costs) | 2,214,121 | 2,424,001 | |
Restricted Cash, Current Portion | 0 | 735 | 0 |
Restricted Cash, Less Current Portion | 0 | 5,247 | $ 0 |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 3,565 | 15,617 | |
Restricted Cash | 0 | 5,982 | |
Long-Term Debt (Excluding Debt Issuance Costs) | 2,231,517 | 2,450,853 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 3,565 | 15,617 | |
Restricted Cash | 0 | 5,982 | |
Long-Term Debt (Excluding Debt Issuance Costs) | $ 2,483,019 | $ 2,638,251 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | Apr. 03, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2020 |
Derivative [Line Items] | |||||||
Debt instrument, face amount | $ 1,000 | ||||||
Cash received in settlement of derivatives | $ (5,574,000) | $ (3,141,000) | $ 223,000 | ||||
Interest Rate Swap on Line Of Credit | Long | |||||||
Derivative [Line Items] | |||||||
Put option (as a percent) | 0.25% | ||||||
Interest Rate Swap on Revolving Credit Facility | Long | |||||||
Derivative [Line Items] | |||||||
Put option (as a percent) | 0.00% | 0.00% | |||||
Derivative term of contract | 4 years | 4 years | |||||
Derivative notional amount | $ 250,000,000 | 250,000,000 | |||||
Commodity Swap | |||||||
Derivative [Line Items] | |||||||
Cash received in settlement of derivatives | $ 54,982,000 | ||||||
Credit Facility | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | $ 175,000,000 | ||||||
Revolving Credit Facility | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | $ 160,000,000 | ||||||
Credit facility, modification period | 3 years |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts of Derivative Instruments (Details) - Mcf Mcf in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Natural Gas Commodity Swaps (Bcf) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 1,686,100 | 1,256,900 |
Natural Gas Basis Swaps (Bcf) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 1,233,300 | 1,294,100 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 410,000 | 569,972 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Total Current Assets | $ 95,002 | $ 84,657 |
Total Other Non-Current Assets | 131,994 | 188,237 |
Total Current Liabilities | 521,598 | 42,329 |
Total Non-Current Liabilities | 687,354 | 127,290 |
Commodity Swaps | ||
Derivative [Line Items] | ||
Total Current Assets | 92 | 53,668 |
Total Other Non-Current Assets | 12,419 | 134,661 |
Total Current Liabilities | 505,460 | 23,506 |
Total Non-Current Liabilities | 642,442 | 59,388 |
Basis Only Swaps | ||
Derivative [Line Items] | ||
Total Current Assets | 94,682 | 30,848 |
Total Other Non-Current Assets | 119,077 | 52,903 |
Total Current Liabilities | 13,206 | 14,491 |
Total Non-Current Liabilities | 41,332 | 57,150 |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Total Current Assets | 228 | 141 |
Total Other Non-Current Assets | 498 | 673 |
Total Current Liabilities | 2,932 | 4,332 |
Total Non-Current Liabilities | $ 3,580 | $ 10,752 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instrument on Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Cash (Paid) Received in Settlement of Commodity Derivative Instruments: | $ (539,016) | $ 461,217 | $ 69,780 |
Unrealized (Loss) Gain on Commodity Derivative Instruments: | (1,093,717) | (288,235) | 306,325 |
(Loss) Gain on Commodity Derivative Instruments | (1,632,733) | 172,982 | 376,105 |
Cash (Paid) Received in Settlement of Interest Rate Swaps | (5,574) | (3,141) | 223 |
Unrealized Gain (Loss) on Interest Rate Swaps | 8,485 | (13,051) | (1,219) |
Basis Swaps | |||
Derivative [Line Items] | |||
Cash (Paid) Received in Settlement of Commodity Derivative Instruments: | 57,603 | 70,670 | (13,119) |
Unrealized (Loss) Gain on Commodity Derivative Instruments: | 147,110 | 119,073 | (100,147) |
(Loss) Gain on Commodity Derivative Instruments | 204,713 | 189,743 | (113,266) |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
(Loss) Gain on Commodity Derivative Instruments | 2,911 | (16,192) | (996) |
Natural Gas Revenue | Commodity Swaps | |||
Derivative [Line Items] | |||
Cash (Paid) Received in Settlement of Commodity Derivative Instruments: | (596,619) | 390,547 | 82,899 |
Unrealized (Loss) Gain on Commodity Derivative Instruments: | (1,240,827) | (407,308) | 406,472 |
(Loss) Gain on Commodity Derivative Instruments | $ (1,837,446) | $ (16,761) | $ 489,371 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) | May 01, 2020employee |
Murray | Settlement Agreement Between Murray And UMWA [Member] | |
Loss Contingencies [Line Items] | |
Number of retirees | 2,159 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Maximum Potential Total of Future Payments Under Commitment Instruments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | $ 289,249 |
Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 184,161 |
Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 105,088 |
Less Than 1 Year | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 286,161 |
Less Than 1 Year | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 184,161 |
Less Than 1 Year | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 102,000 |
1-3 Years | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 3,088 |
1-3 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
1-3 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 3,088 |
3-5 Years | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
3-5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
3-5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Beyond 5 Years | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Beyond 5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Beyond 5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Firm Transportation | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 181,194 |
Firm Transportation | Less Than 1 Year | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 181,194 |
Firm Transportation | 1-3 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Firm Transportation | 3-5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Firm Transportation | Beyond 5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Other | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 2,967 |
Other | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 8,834 |
Other | Less Than 1 Year | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 2,967 |
Other | Less Than 1 Year | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 7,206 |
Other | 1-3 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Other | 1-3 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 1,628 |
Other | 3-5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Other | 3-5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Other | Beyond 5 Years | Letters of Credit | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Other | Beyond 5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Employee-Related | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 2,600 |
Employee-Related | Less Than 1 Year | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 2,600 |
Employee-Related | 1-3 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Employee-Related | 3-5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Employee-Related | Beyond 5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Environmental | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 11,984 |
Environmental | Less Than 1 Year | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 10,524 |
Environmental | 1-3 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 1,460 |
Environmental | 3-5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Environmental | Beyond 5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Financial Guarantees | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 81,670 |
Financial Guarantees | Less Than 1 Year | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 81,670 |
Financial Guarantees | 1-3 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Financial Guarantees | 3-5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | 0 |
Financial Guarantees | Beyond 5 Years | Surety Bonds | |
Loss Contingencies [Line Items] | |
Maximum potential total of future payments under commitments | $ 0 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Unrecorded Unconditional Purchase Obligation (Details) - Purchase Commitment $ in Thousands | Dec. 31, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Less than 1 year | $ 258,573 |
1 - 3 years | 438,563 |
3 - 5 years | 387,027 |
More than 5 years | 896,943 |
Total Purchase Obligations | $ 1,981,106 |
Segment Information - Industry
Segment Information - Industry Segment Results (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020divisionsegment | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 4 | 2 | ||
Number of divisions | division | 2 | |||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Commodity Derivative Instruments | $ (1,632,733) | $ 172,982 | $ 376,105 | |
Other Revenue and Operating Income | 105,883 | 82,459 | 87,992 | |
Total Revenue and Other Operating Income | 756,792 | 1,257,978 | 1,922,449 | |
Total Operating Expense | 1,234,874 | 1,697,744 | 1,736,473 | |
Earnings (Loss) Before Income Tax | (636,513) | (602,831) | 59,684 | |
Segment Assets | 8,100,751 | 8,041,764 | 9,060,806 | |
Depreciation, Depletion and Amortization | 515,118 | 501,821 | 508,463 | |
Capital Expenditures | 465,861 | 487,291 | 1,192,599 | |
Natural Gas, NGLs and Oil Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,183,929 | 896,745 | 1,364,325 | |
Purchased Gas Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 99,713 | 105,792 | 94,027 | |
Citadel Energy Marketing LLC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 334,407 | |||
Total Revenue and Other Operating Income | 334,407 | |||
Direct Energy Business Marketing LLC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 235,760 | 167,390 | 214,980 | |
Total Revenue and Other Operating Income | 235,760 | 167,390 | 214,980 | |
NJR Energy Services Company | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 147,540 | |||
Total Revenue and Other Operating Income | 147,540 | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,364,909 | 1,067,247 | 1,532,666 | |
Investments in Unconsolidated Equity Affiliates | 17,301 | 16,022 | 16,710 | |
Corporate, Non-Segment | Natural Gas | Commodity Swap | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Commodity Derivative Instruments | 83,997 | |||
Reportable Subsegments | Exploration and Production | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Expense | 813,207 | |||
Segment Assets | 1,311,556 | |||
Depreciation, Depletion and Amortization | 8,055 | |||
Capital Expenditures | 6,175 | |||
Reportable Subsegments | Exploration and Production | Operating Segments | Shale | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Commodity Derivative Instruments | (492,526) | 337,269 | 62,418 | |
Other Revenue and Operating Income | 81,267 | 64,710 | 74,314 | |
Total Revenue and Other Operating Income | 1,577,734 | 1,183,017 | 1,336,008 | |
Total Operating Expense | 804,004 | 709,036 | 787,488 | |
Earnings (Loss) Before Income Tax | 773,730 | 473,981 | 548,520 | |
Segment Assets | 6,071,495 | 6,068,933 | 6,527,245 | |
Depreciation, Depletion and Amortization | 440,024 | 416,441 | 427,219 | |
Capital Expenditures | 453,603 | 474,545 | 1,175,091 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Coalbed Methane | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Commodity Derivative Instruments | (46,304) | 39,884 | 7,335 | |
Other Revenue and Operating Income | 0 | 0 | 0 | |
Total Revenue and Other Operating Income | 147,274 | 154,250 | 171,228 | |
Total Operating Expense | 117,900 | 127,845 | 135,778 | |
Earnings (Loss) Before Income Tax | 29,374 | 26,405 | 35,450 | |
Segment Assets | 1,047,851 | 1,095,816 | 1,222,005 | |
Depreciation, Depletion and Amortization | 58,602 | 69,745 | 73,189 | |
Capital Expenditures | 10,880 | 9,789 | 11,333 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Commodity Derivative Instruments | (1,093,903) | (204,171) | 306,352 | |
Other Revenue and Operating Income | 24,616 | 17,749 | 13,678 | |
Total Revenue and Other Operating Income | (968,216) | (79,289) | 415,213 | |
Total Operating Expense | 312,970 | 860,863 | ||
Earnings (Loss) Before Income Tax | (1,439,617) | (1,103,217) | (524,286) | |
Segment Assets | 981,405 | 877,015 | ||
Depreciation, Depletion and Amortization | 16,492 | 15,635 | ||
Capital Expenditures | 1,378 | 2,957 | ||
Reportable Subsegments | Exploration and Production | Operating Segments | Shale and Other | ||||
Segment Reporting Information [Line Items] | ||||
Equity in Earnings (Loss) of Affiliates | 5,780 | 688 | 2,103 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Natural Gas, NGLs and Oil Revenue | Shale | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,988,993 | 781,038 | 1,199,276 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Natural Gas, NGLs and Oil Revenue | Coalbed Methane | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 193,578 | 114,366 | 163,893 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Natural Gas, NGLs and Oil Revenue | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,358 | 1,341 | 1,156 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Purchased Gas Revenue | Shale | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Purchased Gas Revenue | Coalbed Methane | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Reportable Subsegments | Exploration and Production | Operating Segments | Purchased Gas Revenue | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 99,713 | $ 105,792 | $ 94,027 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Information, Revenue and Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Loss) Gain on Commodity Derivative Instruments | $ (1,632,733) | $ 172,982 | $ 376,105 |
Other Operating Income | 24,616 | 17,749 | 13,678 |
Total Consolidated Revenue and Other Operating Income | 756,792 | 1,257,978 | 1,922,449 |
Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Segment Revenue from Contracts with External Customers | $ 2,364,909 | $ 1,067,247 | $ 1,532,666 |
Supplemental Gas Data (unaudi_3
Supplemental Gas Data (unaudited) - Capitalized Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Extractive Industries [Abstract] | ||
Intangible Drilling Cost | $ 5,247,800 | $ 4,965,252 |
Gas Gathering Assets | 2,483,561 | 2,510,916 |
Proved Gas Properties | 1,312,706 | 1,253,094 |
Unproved Gas Properties | 730,400 | 725,705 |
Gas Wells and Related Equipment | 1,202,731 | 1,120,061 |
Other Gas Assets | 96,279 | 95,734 |
Total Property, Plant and Equipment | 11,073,477 | 10,670,762 |
Accumulated Depreciation, Depletion and Amortization | (4,279,070) | (3,852,593) |
Net Capitalized Costs | $ 6,794,407 | $ 6,818,169 |
Supplemental Gas Data (unaudi_4
Supplemental Gas Data (unaudited) - Costs Incurred for Property Acquisition, Exploration and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Acquisitions: | |||
Proved Properties | $ 32,355 | $ 16,622 | $ 36,710 |
Unproved Properties | 20,568 | 8,060 | 24,760 |
Development | 393,641 | 432,438 | 1,063,945 |
Exploration | 30,927 | 33,644 | 79,855 |
Total | 477,491 | 490,764 | 1,205,270 |
Midstream | |||
Property Acquisitions: | |||
Development | $ 35,000 | $ 67,000 | $ 325,000 |
Supplemental Gas Data (unaudi_5
Supplemental Gas Data (unaudited) - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Extractive Industries [Abstract] | ||||
Natural Gas, NGLs and Oil Revenue | $ 2,183,929 | $ 896,745 | $ 1,364,325 | |
Realized (Loss) Gain on Commodity Derivative Instruments | (539,016) | 461,217 | 69,780 | |
Unrealized (Loss) Gain on Commodity Derivative Instruments | (1,093,717) | (288,235) | 306,325 | |
Purchased Gas Revenue | 99,713 | 105,792 | 94,027 | |
Total Revenue | 650,909 | 1,175,519 | 1,834,457 | |
Lease Operating Expense | 46,256 | 40,407 | 65,443 | |
Production, Ad Valorem and Other Fees | 34,051 | 24,196 | 27,461 | |
Transportation, Gathering and Compression | 343,635 | 285,683 | 330,539 | |
Purchased Gas Costs | 93,776 | 100,902 | 90,553 | |
Impairment of Exploration and Production Properties | $ 327,400 | 0 | 61,849 | 327,400 |
Impairment of Unproved Properties and Expirations | 0 | 0 | 119,429 | |
Exploration Costs | 20,626 | 14,994 | 44,380 | |
Depreciation, Depletion and Amortization | 515,118 | 501,821 | 508,463 | |
Total Costs | 1,053,462 | 1,029,852 | 1,513,668 | |
Pre-tax Operating (Loss) Income | (402,553) | 145,667 | 320,789 | |
Income Tax (Benefit) Expense | (87,354) | 42,098 | 149,167 | |
Results of Operations for Producing Activities excluding Corporate and Interest Costs | $ (315,199) | $ 103,569 | $ 171,622 |
Supplemental Gas Data (unaudi_6
Supplemental Gas Data (unaudited) - Average Unit Prices and Average Production Costs (Details) Mcfe in Thousands | 12 Months Ended | ||
Dec. 31, 2021dollarsPerMcfeMcfe | Dec. 31, 2020dollarsPerMcfeMcfe | Dec. 31, 2019dollarsPerMcfeMcfe | |
Average Sales Price and Production Costs Per Unit of Production [Line Items] (Deprecated 2019-01-31) | |||
Production (MMcfe) | Mcfe | 590,248 | 511,072 | 539,149 |
Natural Gas, Per Thousand Cubic Feet | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] (Deprecated 2019-01-31) | |||
Total Average Sales Price Before Effects of Commodity Derivative Financial Settlements (per Mcfe) | 3.70 | 1.75 | 2.53 |
Average Effects of Commodity Derivative Financial Settlements (per Mcfe) | (0.98) | 0.78 | 0.14 |
Total Average Sales Price Including Effects of Commodity Derivative Financial Settlements (per Mcfe) | 2.79 | 2.49 | 2.66 |
Average Lifting Costs, Excluding Ad Valorem and Severance Taxes (per Mcfe) | 0.08 | 0.08 | 0.12 |
Supplemental Gas Data (unaudi_7
Supplemental Gas Data (unaudited) - Narrative (Details) $ in Thousands, Mcf in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)wellMcf | Dec. 31, 2020USD ($)well | Dec. 31, 2019USD ($)well | Dec. 31, 2018USD ($) | |
Extractive Industries [Abstract] | ||||
Net development wells drilled | 33 | 29 | 75.7 | |
Net dry development wells drilled | 0 | 0 | 1 | |
Net exploratory wells drilled | 0 | 2 | 5 | |
Number of net dry exploratory wells | 0 | 0 | 0 | |
Net development wells drilled but uncompleted | 13 | |||
Net exploratory wells completed, awaiting tie-in to production | 0 | |||
Gas delivery commitment, remaining contractual volume | Mcf | 394.6 | |||
Period from reserves booking for proved undeveloped locations to be fully developed | 5 years | |||
Number of wells pending determination of proved reserves | 1 | |||
Oil and Gas, Development Well Drilled [Line Items] | ||||
Capitalized exploratory well costs | $ | $ 0 | $ 9,062 | $ 8,984 | $ 8,178 |
Supplemental Gas Data (unaudi_8
Supplemental Gas Data (unaudited) - Producing Wells, Developed Acreage and Undeveloped Acreage (Details) well in Thousands, a in Thousands | Dec. 31, 2021awell |
Extractive Industries [Abstract] | |
Working interest percentage | 100.00% |
Gross | |
Proved Developed Acreage | 376,850 |
Proved Undeveloped Acreage | 41,605 |
Unproved Acreage | 4,756,680 |
Total Acreage | 5,175,135 |
Net | |
Proved Developed Acreage | 376,850 |
Proved Undeveloped Acreage | 41,605 |
Unproved Acreage | 3,442,159 |
Total Acreage | 3,860,614 |
Working Interest | |
Gross | |
Producing Gas Wells | well | 4,716 |
Net | |
Producing Gas Wells | well | 4,432 |
Royalty Interest | |
Gross | |
Producing Gas Wells | well | 2,031 |
Producing Oil Wells | well | 150 |
Net | |
Producing Gas Wells | well | 0 |
Producing Oil Wells | well | 0 |
Supplemental Gas Data (unaudi_9
Supplemental Gas Data (unaudited) - Proved Undeveloped Reserves (Details) Mcfe in Thousands, Mcf in Thousands, $ in Thousands, bbl in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)McfewellMcfbbl | Dec. 31, 2020USD ($)McfewellbblMcf | Dec. 31, 2019USD ($)McfebblMcf | |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Beginning balance (energy) | 9,549,758 | 8,425,667 | 7,881,335 |
Revisions (energy) | (327,050) | 740,129 | (518,570) |
Price changes (energy) | 86,532 | (1,351,934) | (45,246) |
Extensions and Discoveries (energy) | 906,738 | 2,246,968 | 1,647,297 |
Production (MMcfe) | (590,248) | (511,072) | (539,149) |
Ending balance (energy) | 9,625,730 | 9,549,758 | 8,425,667 |
Proved developed resources (energy) | 5,905,611 | 5,199,748 | 4,838,858 |
Proved undeveloped resources (energy) | 3,720,119 | 4,350,010 | 3,586,809 |
Downward revision due to plan changes (energy) | 356,000 | 677,000 | 872,000 |
Downward revision due to PUD removal (energy) | 304,000 | ||
Upward revision from increased performance (energy) | 331,000 | 579,000 | 657,000 |
Proved and unproved resources, extensions and discoveries (energy) | 26,000 | 70,000 | 77,000 |
Increase in reserve due to decrease in operating costs (energy) | 853,000 | ||
Downward revision for acreage consolidation (energy) | 267,000 | ||
Downward revision due to 5 year rule (energy) | 60,000 | ||
Performance revision associated with proved developed producing assets (energy) | 46,000 | ||
Capital spent related to undeveloped reserves transferred to developed | $ | $ 465,861 | $ 487,291 | $ 1,192,599 |
Downward revision due to risk in well development (energy) | 20,000 | ||
Reserves reported for more than five years | 310 | ||
Utica | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Number of wells removed from development plan | well | 4 | ||
Utica | Central Pennsylvania and Southwest Pennsylvania | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved and unproved resources, extensions and discoveries (energy) | 405,000 | ||
Number of dry gas wells added | well | 16 | ||
Marcellus | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Number of wells removed from development plan | well | 23 | ||
Marcellus | Southwest Pennsylvania and West Virginia | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved and unproved resources, extensions and discoveries (energy) | 476,000 | ||
Number of dry gas wells added | well | 29 | ||
Natural Gas | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance (volume) | Mcf | 9,034,066 | 7,938,406 | 7,436,338 |
Revisions (volume) | Mcf | (409,215) | 407,836 | (521,617) |
Price Changes (volume) | Mcf | 82,248 | (1,019,523) | (40,773) |
Extension and Discoveries (volume) | Mcf | 832,696 | 2,188,773 | 1,569,813 |
Production (volume) | Mcf | (551,988) | (481,426) | (505,355) |
Ending balance (volume) | Mcf | 8,987,807 | 9,034,066 | 7,938,406 |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed resources (volume) | Mcf | 5,569,332 | 4,939,283 | 4,473,534 |
Proved undeveloped resources (volume) | Mcf | 3,418,475 | 4,094,783 | 3,464,873 |
NGLs | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance (volume) | bbl | 81,867 | 75,844 | 65,904 |
Revisions (volume) | bbl | 13,655 | 51,857 | 5,926 |
Price Changes (volume) | bbl | 692 | (50,456) | (740) |
Extension and Discoveries (volume) | bbl | 12,047 | 9,299 | 10,182 |
Production (volume) | bbl | (5,976) | (4,677) | (5,428) |
Ending balance (volume) | bbl | 102,285 | 81,867 | 75,844 |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed resources (volume) | bbl | 53,204 | 42,204 | 59,800 |
Proved undeveloped resources (volume) | bbl | 49,081 | 39,664 | 16,044 |
Condensate & Crude Oil | |||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||
Beginning balance (volume) | bbl | 4,081 | 5,366 | 8,261 |
Revisions (volume) | bbl | 39 | 3,525 | (5,418) |
Price Changes (volume) | bbl | 22 | (4,946) | (5) |
Extension and Discoveries (volume) | bbl | 294 | 400 | 2,732 |
Production (volume) | bbl | (400) | (264) | (204) |
Ending balance (volume) | bbl | 4,036 | 4,081 | 5,366 |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Proved developed resources (volume) | bbl | 2,843 | 1,207 | 1,087 |
Proved undeveloped resources (volume) | bbl | 1,193 | 2,874 | 4,278 |
Proved Undeveloped | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Beginning balance (energy) | 4,350,010 | ||
Undeveloped Reserves Transferred to Developed (energy) | (1,133,110) | ||
Extensions and Discoveries (energy) | 880,965 | ||
Ending balance (energy) | 3,720,119 | 4,350,010 | |
Capital spent related to undeveloped reserves transferred to developed | $ | $ 248,232 | ||
Proved Undeveloped | Revisions Due to Five Year Rule | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Revisions (energy) | (59,948) | ||
Proved Undeveloped | Price Revisions | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Revisions (energy) | (4,939) | ||
Proved Undeveloped | Revisions Due to Plan Changes | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Revisions (energy) | (643,994) | ||
Proved Undeveloped | Revisions Due to Changes Related to Well Performance | |||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||
Revisions (energy) | 331,135 |
Supplemental Gas Data (unaud_10
Supplemental Gas Data (unaudited) - Capitalized Exploratory Well Cost Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||
Balance, Beginning of Period | $ 9,062 | $ 8,984 | $ 8,178 |
Additions to Capitalized Exploratory Well Costs Pending the Determination of Proved Reserves | 0 | 28,336 | 66,409 |
Reclassifications to Wells, Facilities and Equipment Based on the Determination of Proved Reserves | 0 | (28,258) | (65,603) |
Capitalized Exploratory Well Costs Charged to Expense | (9,062) | 0 | 0 |
Balance, End of Period | $ 0 | $ 9,062 | $ 8,984 |
Supplemental Gas Data (unaud_11
Supplemental Gas Data (unaudited) - Future Cash Flow of Proved Reserves (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)usd_per_mcfusd_per_bbl | Dec. 31, 2020USD ($)usd_per_mcfusd_per_bbl | Dec. 31, 2019USD ($)usd_per_mcfusd_per_bbl | Dec. 31, 2018USD ($) | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Revenues | $ 31,838,532 | $ 16,577,563 | $ 19,489,588 | |
Production Costs | (8,246,671) | (6,071,763) | (7,903,120) | |
Development Costs | (1,735,784) | (1,957,519) | (1,121,073) | |
Income Tax Expense | (5,838,632) | (2,235,205) | (2,720,994) | |
Future Net Cash Flows | 16,017,445 | 6,313,076 | 7,744,401 | |
Discounted to Present Value at a 10% Annual Rate | (10,135,869) | (3,677,340) | (4,673,932) | |
Total Standardized Measure of Discounted Net Cash Flows | 5,881,576 | 2,635,736 | $ 3,070,469 | $ 4,655,457 |
Increase in standardized measure of discounted net cash flows | 932,000 | |||
Development costs, plugging and abandonment costs | 405,700 | 402,174 | ||
Pre-tax discounted basis, plugging and abandonment costs | 7,166 | 18,357 | ||
Midstream | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Development costs relating to capital | 185,074 | 286,724 | ||
Pre-tax discounted basis, development costs relating to capital | $ 154,200 | $ 231,512 | ||
Natural Gas | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Adjusted oil price (in usd per unit) | usd_per_mcf | 3.19 | 1.70 | 2.24 | |
Oil | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Adjusted oil price (in usd per unit) | usd_per_bbl | 55.72 | 35.61 | 44.31 | |
NGL | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Adjusted oil price (in usd per unit) | usd_per_bbl | 28.44 | 13.18 | 19.10 |
Supplemental Gas Data (unaud_12
Supplemental Gas Data (unaudited) - Change in Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 2,635,736 | $ 3,070,469 | $ 4,655,457 |
Net Changes in Sales Prices and Production Costs | 5,272,386 | (695,216) | (2,944,555) |
Sales Net of Production Costs | (1,220,971) | (1,007,676) | (824,360) |
Net Change Due to Revisions in Quantity Estimates | (334,660) | 322,820 | (252,796) |
Net Change Due to Extensions, Discoveries and Improved Recovery | 699,710 | 268,196 | 654,027 |
Development Costs Incurred During the Period | 393,641 | 434,273 | 739,874 |
Difference in Previously Estimated Development Costs Compared to Actual Costs Incurred During the Period | (33,175) | (129,642) | (323,922) |
Changes in Estimated Future Development Costs | 31,406 | (499,316) | (24,469) |
Net Change in Future Income Taxes | (1,231,883) | 138,404 | 409,797 |
Accretion | 329,782 | 390,391 | 583,320 |
Timing and Other | (660,396) | 343,033 | 398,096 |
Total Discounted Cash Flow at End of Period | $ 5,881,576 | $ 2,635,736 | $ 3,070,469 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 123,098 | $ 125,054 | $ 94,455 |
Charged to expense - additions | 41,300 | 48 | 33,238 |
Release of valuation allowance - deductions | (12,600) | (2,004) | (2,639) |
Charged to expense - deductions | 0 | 0 | 0 |
Balance at end of period | 151,798 | 123,098 | 125,054 |
State Operating Loss Carry-Forwards | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 79,198 | 81,202 | 47,964 |
Charged to expense - additions | 41,300 | 0 | 33,238 |
Release of valuation allowance - deductions | (8,200) | (2,004) | 0 |
Charged to expense - deductions | 0 | 0 | 0 |
Balance at end of period | 112,298 | 79,198 | 81,202 |
Charitable Contributions | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 706 | 658 | 3,297 |
Charged to expense - additions | 48 | 0 | |
Release of valuation allowance - deductions | (610) | 0 | (2,639) |
Charged to expense - deductions | 0 | 0 | 0 |
Balance at end of period | 96 | 706 | 658 |
Foreign Tax Credits | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 43,194 | 43,194 | 43,194 |
Charged to expense - additions | 0 | 0 | 0 |
Release of valuation allowance - deductions | (3,790) | 0 | 0 |
Charged to expense - deductions | 0 | 0 | 0 |
Balance at end of period | $ 39,404 | $ 43,194 | $ 43,194 |