Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT:

	March 31, 2020		December 31, 2019
Intangible Drilling Cost	$	4,764,284	$	4,688,497
Gas Gathering Equipment	2,477,889		2,463,866
Proved Gas Properties	1,209,521		1,208,046
Gas Wells and Related Equipment	1,067,318		1,042,000
Unproved Gas Properties	756,151		755,590
Surface Land and Other Equipment	225,074		226,285
Other	191,279		187,722
Total Property, Plant and Equipment	10,691,516		10,572,006
Less: Accumulated Depreciation, Depletion and Amortization	3,622,413		3,435,431
Total Property, Plant and Equipment - Net	$	7,069,103	$	7,136,575

Impairment of Proved Property

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 three months ended March 31, 2020, CNX recognized certain indicators of impairments specific to our Southwest Pennsylvania (SWPA) CBM asset group and determined that 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 quarter.