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 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, exploration and production related other costs, 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. Industry segment results for the three months ended September 30, 2022 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,029,854 $ 96,360 $ 1,127 $ 1,127,341 (A) Purchased Gas Revenue — — 31,738 31,738 Loss on Commodity Derivative Instruments (601,979) (48,945) (411,429) (1,062,353) Other Revenue and Operating Income 16,388 — 3,947 20,335 (B) Total Revenue and Other Operating Income (Loss) $ 444,263 $ 47,415 $ (374,617) $ 117,061 Total Operating Expense $ 205,866 $ 33,399 $ 86,208 $ 325,473 Earnings (Loss) Before Income Tax $ 238,397 $ 14,016 $ (519,128) $ (266,715) Segment Assets $ 6,397,404 $ 1,269,492 $ 966,230 $ 8,633,126 (C) Depreciation, Depletion and Amortization $ 97,121 $ 12,946 $ 4,100 $ 114,167 Capital Expenditures $ 129,302 $ 3,038 $ 1,213 $ 133,553 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $138,349 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Includes midstream revenue of $16,388 and equity in earnings of unconsolidated affiliates of $854 for Shale and Other, respectively. (C) Includes investments in unconsolidated equity affiliates of $13,332. Industry segment results for the three months ended September 30, 2021 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 536,412 $ 49,107 $ 396 $ 585,915 (D) Purchased Gas Revenue — — 16,311 16,311 Loss on Commodity Derivative Instruments (119,429) (11,620) (1,376,221) (1,507,270) Other Revenue and Operating Income 19,050 — 5,733 24,783 (E) Total Revenue and Other Operating Income (Loss) $ 436,033 $ 37,487 $ (1,353,781) $ (880,261) Total Operating Expense $ 206,703 $ 30,124 $ 68,031 $ 304,858 Earnings (Loss) Before Income Tax $ 229,330 $ 7,363 $ (1,469,140) $ (1,232,447) Segment Assets $ 6,076,533 $ 1,057,543 $ 1,094,077 $ 8,228,153 (F) Depreciation, Depletion and Amortization $ 111,643 $ 14,031 $ 4,060 $ 129,734 Capital Expenditures $ 94,317 $ 2,105 $ 341 $ 96,763 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $93,499 to Citadel Energy Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (E) Includes midstream revenue of $19,050 and equity in earnings of unconsolidated affiliates of $995 for Shale and Other, respectively. (F) Includes investments in unconsolidated equity affiliates of $17,020. Industry segment results for the nine months ended September 30, 2022 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 2,633,934 $ 239,316 $ 2,121 $ 2,875,371 (G) Purchased Gas Revenue — — 124,132 124,132 Loss on Commodity Derivative Instruments (1,340,463) (111,446) (1,989,480) (3,441,389) Other Revenue and Operating Income 52,035 — 14,232 66,267 (H) Total Revenue and Other Operating Income (Loss) $ 1,345,506 $ 127,870 $ (1,848,995) $ (375,619) Total Operating Expense $ 593,179 $ 95,449 $ 289,840 $ 978,468 Earnings (Loss) Before Income Tax $ 752,327 $ 32,421 $ (2,253,045) $ (1,468,297) Segment Assets $ 6,397,404 $ 1,269,492 $ 966,230 $ 8,633,126 (I) Depreciation, Depletion and Amortization $ 294,475 $ 39,222 $ 15,273 $ 348,970 Capital Expenditures $ 379,381 $ 8,959 $ 4,197 $ 392,537 (G) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $351,649 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (H) Includes midstream revenue of $52,035 and equity in earnings of unconsolidated affiliates of $3,031 for Shale and Other, respectively. (I) Includes investments in unconsolidated equity affiliates of $13,332. Industry segment results for the nine months ended September 30, 2021 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,211,239 $ 124,516 $ 833 $ 1,336,588 (J) Purchased Gas Revenue — — 66,500 66,500 Loss on Commodity Derivative Instruments (126,641) (12,359) (1,873,714) (2,012,714) Other Revenue and Operating Income 56,795 — 18,432 75,227 (K) Total Revenue and Other Operating Income (Loss) $ 1,141,393 $ 112,157 $ (1,787,949) $ (534,399) Total Operating Expense $ 587,409 $ 86,883 $ 211,080 $ 885,372 Earnings (Loss) Before Income Tax $ 553,984 $ 25,274 $ (2,122,478) $ (1,543,220) Segment Assets $ 6,076,533 $ 1,057,543 $ 1,094,077 $ 8,228,153 (L) Depreciation, Depletion and Amortization $ 325,529 $ 43,779 $ 11,976 $ 381,284 Capital Expenditures $ 342,665 $ 5,749 $ 736 $ 349,150 (J) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $193,964 to Citadel Energy marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (K) Includes midstream revenue of $56,795 and equity in earnings of unconsolidated affiliates of $3,499 for Shale and Other, respectively. (L) Includes investments in unconsolidated equity affiliates of $17,020. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income (Loss) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Total Segment Revenue from Contracts with External Customers $ 1,175,467 $ 621,276 $ 3,051,538 $ 1,459,883 Loss on Commodity Derivative Instruments (1,062,353) (1,507,270) (3,441,389) (2,012,714) Other Operating Income 3,947 5,733 14,232 18,432 Total Consolidated Revenue and Other Operating Income (Loss) $ 117,061 $ (880,261) $ (375,619) $ (534,399) |