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, new technologies, 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 June 30, 2023 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 234,192 $ 22,634 $ 235 $ 257,061 (A) Purchased Gas Revenue — — 9,355 9,355 Gain on Commodity Derivative Instruments 73,522 6,002 462,948 542,472 Other Revenue and Operating Income 17,027 — 13,785 30,812 (B) Total Revenue and Other Operating Income $ 324,741 $ 28,636 $ 486,323 $ 839,700 Total Operating Expense $ 171,501 $ 34,020 $ 66,113 $ 271,634 Earnings (Loss) Before Income Tax $ 153,240 $ (5,384) $ 488,866 $ 636,722 Segment Assets $ 6,589,145 $ 949,438 $ 993,272 $ 8,531,855 (C) Depreciation, Depletion and Amortization $ 86,816 $ 12,586 $ 4,280 $ 103,682 Capital Expenditures $ 186,285 $ 7,630 $ 2,070 $ 195,985 (A) Included in Natural Gas, NGLs and Oil Revenue are sales of $36,511 to Citadel Energy Marketing LLC, and $31,648 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 $17,027 and equity in earnings of unconsolidated affiliates of $1,334 for Shale and Other, respectively. Other also includes sales of environmental attributes of $7,986. (C) Other includes investments in unconsolidated equity affiliates of $13,162. Industry segment results for the three months ended June 30, 2022 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 923,269 $ 79,583 $ 554 $ 1,003,406 (D) Purchased Gas Revenue — — 46,552 46,552 Loss on Commodity Derivative Instruments (489,026) (41,222) (122,395) (652,643) Other Revenue and Operating Income 17,990 — 5,113 23,103 (E) Total Revenue and Other Operating Income (Loss) $ 452,233 $ 38,361 $ (70,176) $ 420,418 Total Operating Expense $ 189,884 $ 31,470 $ 109,169 $ 330,523 Earnings (Loss) Before Income Tax $ 262,349 $ 6,891 $ (222,316) $ 46,924 Segment Assets $ 6,417,552 $ 969,944 $ 1,308,394 $ 8,695,890 (F) Depreciation, Depletion and Amortization $ 95,910 $ 13,037 $ 7,233 $ 116,180 Capital Expenditures $ 131,279 $ 3,526 $ 1,863 $ 136,668 (D) Included in Natural Gas, NGLs and Oil Revenue are sales of $117,460 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (E) Includes midstream revenue of $17,990 and equity in earnings of unconsolidated affiliates of $1,377 for Shale and Other, respectively. (F) Other includes investments in unconsolidated equity affiliates of $14,978. Industry segment results for the six months ended June 30, 2023 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 641,390 $ 70,670 $ 640 $ 712,700 (G) Purchased Gas Revenue — — 46,167 46,167 Gain on Commodity Derivative Instruments 17,186 1,331 1,286,122 1,304,639 Other Revenue and Operating Income 33,780 — 18,390 52,170 (H) Total Revenue and Other Operating Income $ 692,356 $ 72,001 $ 1,351,319 $ 2,115,676 Total Operating Expense $ 359,618 $ 70,440 $ 162,173 $ 592,231 Earnings Before Income Tax $ 332,738 $ 1,561 $ 1,230,379 $ 1,564,678 Segment Assets $ 6,589,145 $ 949,438 $ 993,272 $ 8,531,855 (I) Depreciation, Depletion and Amortization $ 174,927 $ 25,032 $ 8,945 $ 208,904 Capital Expenditures $ 345,634 $ 17,089 $ 3,290 $ 366,013 (G) Included in Natural Gas, NGLs and Oil Revenue are sales of $86,749 to Direct Energy Business Marketing LLC, and $81,429 to Citadel Energy Marketing LLC, each of which comprises over 10% of revenue from contracts with external customers for the period. (H) Includes midstream revenue of $33,780 and equity in earnings of unconsolidated affiliates of $1,448 for Shale and Other, respectively. Other also includes sales of environmental attributes of $7,986. (I) Other includes investments in unconsolidated equity affiliates of $13,162. Industry segment results for the six months ended June 30, 2022 are: Shale Coalbed Methane Other Consolidated Natural Gas, NGLs and Oil Revenue $ 1,604,080 $ 142,955 $ 995 $ 1,748,030 (J) Purchased Gas Revenue — — 92,393 92,393 Loss on Commodity Derivative Instruments (738,484) (62,501) (1,578,051) (2,379,036) Other Revenue and Operating Income 35,647 — 10,286 45,933 (K) Total Revenue and Other Operating Income (Loss) $ 901,243 $ 80,454 $ (1,474,377) $ (492,680) Total Operating Expense $ 387,313 $ 62,050 $ 203,630 $ 652,993 Earnings (Loss) Before Income Tax $ 513,930 $ 18,404 $ (1,733,916) $ (1,201,582) Segment Assets $ 6,417,552 $ 969,944 $ 1,308,394 $ 8,695,890 (L) Depreciation, Depletion and Amortization $ 197,354 $ 26,276 $ 11,173 $ 234,803 Capital Expenditures $ 250,079 $ 5,921 $ 2,984 $ 258,984 (J) Included in Natural Gas, NGLs and Oil Revenue are sales of $213,299 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (K) Includes midstream revenue of $35,647 and equity in earnings of unconsolidated affiliates of $2,177 for Shale and Other, respectively. (L) Other includes investments in unconsolidated equity affiliates of $14,978. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income (Loss) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Total Segment Revenue from Contracts with External Customers $ 283,443 $ 1,067,948 $ 792,647 $ 1,876,070 Gain (Loss) on Commodity Derivative Instruments 542,472 (652,643) 1,304,639 (2,379,036) Other Operating Income 13,785 5,113 18,390 10,286 Total Consolidated Revenue and Other Operating Income (Loss) $ 839,700 $ 420,418 $ 2,115,676 $ (492,680) |