Segment Information

12 Months Ended

Dec. 31, 2018

SEGMENT INFORMATION:

CNX consists of two principal business divisions: Exploration and Production (E&P) and Midstream. The principal activity of the E&P Division, which includes four reportable segments, is to produce pipeline quality natural gas for sale primarily to gas wholesalers. The E&P Division's reportable segments are Marcellus Shale, Utica Shale, Coalbed Methane, and Other Gas. The Other Gas Segment is primarily related to shallow oil and gas production which is no longer significant to the Company due to CNX selling substantially all of these assets in the 2018 period (See Note 6 - Acquisitions and Dispositions for more information). It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, exploration and production related other costs, impairment of exploration and production properties, as well as various other operating activities assigned to the E&P Division but not allocated to each individual segment.

CNX's Midstream Division is the result of CNX's acquisition of Noble's Midstream, LLC's interest in CNX Gathering (See Note 6 - Acquisitions and Dispositions). As part of the acquisition, CNX now has a controlling financial interest and is the primary beneficiary of CNXM through its approximately 34% ownership of the outstanding limited partner interests (See Note 23 - Variable Interest Entities for more information). The principal activity of the Midstream Division is the ownership, operation, development and acquisition of natural gas gathering and other midstream energy assets, of CNX Gathering and CNXM, which provide natural gas gathering services for the Company's produced gas, as well as for other independent third parties in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. Excluded from the Midstream Division are the gathering assets and operations of CNX that have not been contributed to CNX Gathering and CNXM. Prior to acquisition, the Company accounted for its 50% interest in CNX Gathering LLC as an equity method investment and was included in the E&P Division.

The Company's unallocated expenses include other expense, gain on asset sales related to non-core assets, gain on previously held equity interest, loss on debt extinguishment, impairment of other intangible assets and income taxes.

In the preparation of the following information, intersegment sales have been recorded at amounts approximating market prices. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses. Assets are reflected at the division level for E&P and are not allocated between each individual E&P segment. These assets are not allocated to each individual segment due to the diverse asset base controlled by CNX, whereby each individual asset may service more than one segment within the division. An allocation of such asset base would not be meaningful or representative on a segment by segment basis.Reconciliation of Segment Information to Consolidated Amounts:

Revenue and Other Operating Income:



	For the Years Ended December 31,
	2018			2017		2016
Total Segment Revenue from Contracts with External Customers	$	1,733,704		$	1,179,019	$	836,504
(Loss) Gain on Commodity Derivative Instruments	(30,212		)	206,930		(141,021		)
Other Operating Income	26,942			69,182		64,485
Total Consolidated Revenue and Other Operating Income	$	1,730,434		$	1,455,131	$	759,968

Income (Loss) From Continuing Operations Before Income Tax:



	For the Years Ended December 31,
	2018			2017			2016
Segment Income (Loss) Before Income Taxes for Reportable Business Segments:
Total E&P	$	244,616		$	(63,527	)	$	(594,394	)
Midstream	133,811			—			—
Total Segment Income (Loss) Before Income Taxes for Reportable Business Segments	378,427			(63,527		)	(594,394		)
Unallocated Expenses:
Other Income (Expense)	14,571			(3,826		)	(5,224		)
Gain on Certain Asset Sales	154,775			188,063			14,270
Gain on Previously Held Equity Interest	623,663			—			—
Loss on Debt Extinguishment	(54,118		)	(2,129		)	—
Impairment of Other Intangible Assets	(18,650		)	—			—
Income (Loss) From Continuing Operations Before Income Tax	$	1,098,668		$	118,581		$	(585,348	)

Total Assets:



	December 31,
	2018			2017
Segment Assets for Total Reportable Business Segments:
E&P	$	6,518,597		$	6,391,223
Midstream	1,919,117			—
Intercompany Eliminations	(12,223		)	—
Items Excluded from Segment Assets:
Cash and Other Investments	17,198			509,167
Recoverable Income Taxes	149,481			31,523
Total Consolidated Assets	$	8,592,170		$	6,931,913