QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
-- |
Class | Shares outstanding as of October 21, 2022 | |||||||
Common stock, $0.01 par value |
Page | ||||||||
PART I FINANCIAL INFORMATION | ||||||||
ITEM 1. | Unaudited Condensed Consolidated Financial Statements | |||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II OTHER INFORMATION | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | Risk Factors | |||||||
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
ITEM 6. |
(Dollars in thousands, except per share data) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(Unaudited) | September 30, | September 30, | |||||||||||||||||||||
Revenue and Other Operating Income (Loss): | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | $ | $ | $ | |||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | |||||||||||||||||||
Purchased Gas Revenue | |||||||||||||||||||||||
Other Revenue and Operating Income | |||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | ( | ( | ( | ||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating Expense | |||||||||||||||||||||||
Lease Operating Expense | |||||||||||||||||||||||
Production, Ad Valorem and Other Fees | |||||||||||||||||||||||
Transportation, Gathering and Compression | |||||||||||||||||||||||
Depreciation, Depletion and Amortization | |||||||||||||||||||||||
Exploration and Production Related Other Costs | |||||||||||||||||||||||
Purchased Gas Costs | |||||||||||||||||||||||
Selling, General, and Administrative Costs | |||||||||||||||||||||||
Other Operating Expense | |||||||||||||||||||||||
Total Operating Expense | |||||||||||||||||||||||
Other Expense | |||||||||||||||||||||||
Other Expense | |||||||||||||||||||||||
Loss (Gain) on Asset Sales and Abandonments, net | ( | ( | ( | ||||||||||||||||||||
Loss on Debt Extinguishment | |||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Total Other Expense | |||||||||||||||||||||||
Total Costs and Expenses | |||||||||||||||||||||||
Loss Before Income Tax | ( | ( | ( | ( | |||||||||||||||||||
Income Tax Expense (Benefit) | ( | ( | ( | ||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Loss per Share | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Dividends Declared | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Dollars in thousands) | September 30, | September 30, | |||||||||||||||||||||
(Unaudited) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other Comprehensive Income: | |||||||||||||||||||||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: $( | |||||||||||||||||||||||
Comprehensive Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and Cash Equivalents | $ | $ | |||||||||
Accounts and Notes Receivable: | |||||||||||
Trade, net | |||||||||||
Other Receivables, net | |||||||||||
Supplies Inventories | |||||||||||
Recoverable Income Taxes | |||||||||||
Derivative Instruments | |||||||||||
Prepaid Expenses | |||||||||||
Total Current Assets | |||||||||||
Property, Plant and Equipment: | |||||||||||
Property, Plant and Equipment | |||||||||||
Less—Accumulated Depreciation, Depletion and Amortization | |||||||||||
Total Property, Plant and Equipment—Net | |||||||||||
Other Non-Current Assets: | |||||||||||
Operating Lease Right-of-Use Assets | |||||||||||
Derivative Instruments | |||||||||||
Goodwill | |||||||||||
Other Intangible Assets | |||||||||||
Other | |||||||||||
Total Other Non-Current Assets | |||||||||||
TOTAL ASSETS | $ | $ |
(Unaudited) | |||||||||||
(Dollars in thousands, except per share data) | September 30, 2022 | December 31, 2021 | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts Payable | $ | $ | |||||||||
Derivative Instruments | |||||||||||
Current Portion of Finance Lease Obligations | |||||||||||
Current Portion of Long-Term Debt | |||||||||||
Current Portion of Operating Lease Obligations | |||||||||||
Other Accrued Liabilities | |||||||||||
Total Current Liabilities | |||||||||||
Non-Current Liabilities: | |||||||||||
Long-Term Debt | |||||||||||
Finance Lease Obligations | |||||||||||
Operating Lease Obligations | |||||||||||
Derivative Instruments | |||||||||||
Deferred Income Taxes | |||||||||||
Asset Retirement Obligations | |||||||||||
Other | |||||||||||
Total Non-Current Liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
Stockholders’ Equity: | |||||||||||
Common Stock, $ | |||||||||||
Capital in Excess of Par Value | |||||||||||
Preferred Stock, | |||||||||||
(Accumulated Deficit) Retained Earnings | ( | ||||||||||
Accumulated Other Comprehensive Loss | ( | ( | |||||||||
TOTAL STOCKHOLDERS' EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
(Dollars in thousands) (Unaudited) | Common Stock | Capital in Excess of Par Value | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||
June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Net Loss | — | — | ( | — | ( | ||||||||||||||||||||||||
Issuance of Common Stock | — | — | — | ||||||||||||||||||||||||||
Purchase and Retirement of Common Stock | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Shares Withheld for Taxes | — | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | — | — | ||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||||||||
September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
(Dollars in thousands) (Unaudited) | |||||||||||||||||||||||||||||
June 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Net Loss | — | — | ( | — | ( | ||||||||||||||||||||||||
Issuance of Common Stock | — | — | — | ||||||||||||||||||||||||||
Purchase and Retirement of Common Stock | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Shares Withheld for Taxes | — | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | — | — | ||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||||||||
September 30, 2021 | $ | $ | $ | $ | ( | $ |
(Dollars in thousands) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||
December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Net Loss | — | — | ( | — | ( | ||||||||||||||||||||||||
Issuance of Common Stock | — | — | |||||||||||||||||||||||||||
Purchase and Retirement of Common Stock | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Shares Withheld for Taxes | — | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | — | |||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||||||||
— | ( | — | ( | ||||||||||||||||||||||||||
September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
December 31, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Net Loss | — | — | ( | — | ( | ||||||||||||||||||||||||
Issuance of Common Stock | — | — | |||||||||||||||||||||||||||
Purchase and Retirement of Common Stock | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Shares Withheld for Taxes | — | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of Stock-Based Compensation Awards | — | — | |||||||||||||||||||||||||||
Equity Component of Convertible Senior Notes, net of Issuance Costs | — | ( | — | — | ( | ||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | ||||||||||||||||||||||||||
September 30, 2021 | $ | $ | $ | $ | ( | $ |
(Unaudited) | Nine Months Ended | ||||||||||
Dollars in Thousands | September 30, | ||||||||||
Cash Flows from Operating Activities: | 2022 | 2021 | |||||||||
Net Loss | $ | ( | $ | ( | |||||||
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities: | |||||||||||
Depreciation, Depletion and Amortization | |||||||||||
Amortization of Deferred Financing Costs | |||||||||||
Stock-Based Compensation | |||||||||||
Gain on Asset Sales and Abandonments, net | ( | ( | |||||||||
Loss on Debt Extinguishment | |||||||||||
Loss on Commodity Derivative Instruments | |||||||||||
Gain on Other Derivative Instruments | ( | ( | |||||||||
Net Cash Paid in Settlement of Commodity Derivative Instruments | ( | ( | |||||||||
Deferred Income Taxes | ( | ( | |||||||||
Other | ( | ||||||||||
Changes in Operating Assets: | |||||||||||
Accounts and Notes Receivable | ( | ( | |||||||||
Recoverable Income Taxes | |||||||||||
Supplies Inventories | ( | ||||||||||
Prepaid Expenses | ( | ( | |||||||||
Changes in Other Assets | ( | ||||||||||
Changes in Operating Liabilities: | |||||||||||
Accounts Payable | |||||||||||
Accrued Interest | ( | ( | |||||||||
Other Operating Liabilities | |||||||||||
Changes in Other Liabilities | ( | ( | |||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital Expenditures | ( | ( | |||||||||
Proceeds from Asset Sales | |||||||||||
Net Cash Used in Investing Activities | ( | ( | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Payments on Long-Term Notes | ( | ( | |||||||||
Net Payments on CNXM Revolving Credit Facility | ( | ( | |||||||||
Net (Payments on) Proceeds from CNX Revolving Credit Facility | ( | ||||||||||
Proceeds from Issuance of CNX Senior Notes | |||||||||||
Proceeds from Issuance of CNXM Senior Notes | |||||||||||
Net Payments on CSG Non-Revolving Credit Facilities | ( | ||||||||||
Net Payments on Other Debt | ( | ( | |||||||||
Proceeds from Issuance of Common Stock | |||||||||||
Shares Withheld for Taxes | ( | ( | |||||||||
Purchases of Common Stock | ( | ( | |||||||||
Debt Issuance and Financing Fees | ( | ( | |||||||||
Net Cash Used in Financing Activities | ( | ( | |||||||||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | ( | ||||||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | |||||||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | $ |
September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash and Cash Equivalents | $ | $ | |||||||||
Restricted Cash, Current | |||||||||||
Total Cash, Cash Equivalents, and Restricted Cash | $ | $ |
September 30, | |||||||||||
2022 | 2021 | ||||||||||
Allowance for Credit Losses - Trade, Beginning of Year | $ | $ | |||||||||
Provision for Expected Credit Losses | |||||||||||
Allowance for Credit Losses - Trade, End of Period | $ | $ | |||||||||
Allowance for Credit Losses - Other Receivables, Beginning of Year | $ | $ | |||||||||
Provision for Expected Credit Losses | ( | ||||||||||
Write-off of Uncollectible Accounts | ( | ( | |||||||||
Allowance for Credit Losses - Other Receivables, End of Period | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Anti-Dilutive Options | |||||||||||||||||||||||
Anti-Dilutive Restricted Stock Units | |||||||||||||||||||||||
Anti-Dilutive Performance Share Units | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Options | |||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||
Performance Share Units | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic Earnings Available to Shareholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||
Add Back Interest on Convertible Notes (Net of Tax) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Diluted Earnings Available to Shareholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-Average Shares of Common Stock Outstanding | |||||||||||||||||||||||
Effect of Diluted Shares:* | |||||||||||||||||||||||
Options | — | — | — | — | |||||||||||||||||||
Restricted Stock Units | — | — | — | — | |||||||||||||||||||
Performance Share Units | — | — | — | — | |||||||||||||||||||
Convertible Notes | — | — | — | — | |||||||||||||||||||
Weighted-Average Diluted Shares of Common Stock Outstanding | |||||||||||||||||||||||
Loss per Share: | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue from Contracts with Customers: | |||||||||||||||||||||||
Natural Gas Revenue | $ | $ | $ | $ | |||||||||||||||||||
NGL Revenue | |||||||||||||||||||||||
Oil/Condensate Revenue | |||||||||||||||||||||||
Total Natural Gas, NGL and Oil Revenue | |||||||||||||||||||||||
Purchased Gas Revenue | |||||||||||||||||||||||
Other Sources of Revenue and Other Operating Income (Loss): | |||||||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | |||||||||||||||||||
Other Revenue and Operating Income | |||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | $ | $ | ( | $ | ( | $ | ( |
September 30, 2022 | December 31, 2021 | ||||||||||
Intangible Drilling Cost | $ | $ | |||||||||
Gas Gathering Equipment | |||||||||||
Proved Gas Properties | |||||||||||
Gas Wells and Related Equipment | |||||||||||
Unproved Gas Properties | |||||||||||
Surface Land and Other Equipment | |||||||||||
Other | |||||||||||
Total Property, Plant and Equipment | |||||||||||
Less: Accumulated Depreciation, Depletion and Amortization | |||||||||||
Total Property, Plant and Equipment - Net | $ | $ | |||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Other Intangible Assets: | |||||||||||
Gross Amortizable Asset - Customer Relationships | $ | $ | |||||||||
Less: Accumulated Amortization - Customer Relationships | |||||||||||
Total Other Intangible Assets, net | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Royalties | $ | $ | |||||||||
Deferred Revenue | |||||||||||
Accrued Interest | |||||||||||
Accrued Other Taxes | |||||||||||
Transportation Charges | |||||||||||
Short-Term Incentive Compensation | |||||||||||
Accrued Payroll & Benefits | |||||||||||
Litigation Contingency | |||||||||||
Purchased Gas Payable | |||||||||||
Other | |||||||||||
Current Portion of Long-Term Liabilities: | |||||||||||
Asset Retirement Obligations | |||||||||||
Salary Retirement | |||||||||||
Total Other Accrued Liabilities | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Senior Notes due January 2029 at | $ | $ | |||||||||
Senior Notes due January 2031 at | |||||||||||
CNX Midstream Partners LP Senior Notes due April 2030 at | |||||||||||
Senior Notes due March 2027 at | |||||||||||
Convertible Senior Notes due May 2026 at | |||||||||||
CNX Midstream Partners LP Revolving Credit Facility* | |||||||||||
CNX Revolving Credit Facility | |||||||||||
Less: Unamortized Debt Issuance Costs | |||||||||||
Less: Current Portion | |||||||||||
Long-Term Debt | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Liability Component: | |||||||||||
Principal | $ | $ | |||||||||
Unamortized Discount | ( | ||||||||||
Unamortized Issuance Costs | ( | ( | |||||||||
Net Carrying Amount | $ | $ | |||||||||
Fair Value | $ | $ | |||||||||
Fair Value Hierarchy | Level 2 | Level 2 | |||||||||
Equity Component, net of Purchase Discounts and Issuance Costs | $ | $ |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Contractual Interest Expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization of Debt Discount | |||||||||||||||||||||||
Amortization of Issuance Costs | |||||||||||||||||||||||
Total Interest Expense | $ | $ | $ | $ |
Amount of Commitment Expiration Per Period | |||||||||||||||||||||||||||||
Total Amounts Committed | Less Than 1 Year | 1-3 Years | 3-5 Years | Beyond 5 Years | |||||||||||||||||||||||||
Letters of Credit: | |||||||||||||||||||||||||||||
Firm Transportation | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total Letters of Credit | |||||||||||||||||||||||||||||
Surety Bonds: | |||||||||||||||||||||||||||||
Employee-Related | |||||||||||||||||||||||||||||
Environmental | |||||||||||||||||||||||||||||
Financial Guarantees | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total Surety Bonds | |||||||||||||||||||||||||||||
Total Commitments | $ | $ | $ | $ | $ |
Obligations Due | Amount | ||||
Less than 1 year | $ | ||||
1 - 3 years | |||||
3 - 5 years | |||||
More than 5 years | |||||
Total Purchase Obligations | $ |
September 30, | December 31, | Forecasted to | |||||||||||||||
2022 | 2021 | Settle Through | |||||||||||||||
Natural Gas Commodity Swaps (Bcf) | 2027 | ||||||||||||||||
Natural Gas Basis Swaps (Bcf) | * | 2027 | |||||||||||||||
Interest Rate Swaps | $ | $ | 2024 |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Current Assets: | |||||||||||
Commodity Derivative Instruments: | |||||||||||
Commodity Swaps | $ | $ | |||||||||
Basis Only Swaps | |||||||||||
Interest Rate Swaps | |||||||||||
Total Current Assets | $ | $ | |||||||||
Other Non-Current Assets: | |||||||||||
Commodity Derivative Instruments: | |||||||||||
Commodity Swaps | $ | $ | |||||||||
Basis Only Swaps | |||||||||||
Interest Rate Swaps | |||||||||||
Total Other Non-Current Assets | $ | $ | |||||||||
Current Liabilities: | |||||||||||
Commodity Derivative Instruments: | |||||||||||
Commodity Swaps | $ | $ | |||||||||
Basis Only Swaps | |||||||||||
Interest Rate Swaps | |||||||||||
Total Current Liabilities | $ | $ | |||||||||
Non-Current Liabilities: | |||||||||||
Commodity Derivative Instruments: | |||||||||||
Commodity Swaps | $ | $ | |||||||||
Basis Only Swaps | |||||||||||
Interest Rate Swaps | |||||||||||
Total Non-Current Liabilities | $ | $ |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Realized (Loss) Gain on Commodity Derivative Instruments: | ||||||||||||||||||||||||||
Natural Gas: | ||||||||||||||||||||||||||
Commodity Swaps | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Basis Swaps | ||||||||||||||||||||||||||
Total Realized Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
Unrealized (Loss) Gain on Commodity Derivative Instruments: | ||||||||||||||||||||||||||
Natural Gas: | ||||||||||||||||||||||||||
Commodity Swaps | ( | ( | ( | ( | ||||||||||||||||||||||
Basis Swaps | ( | ( | ||||||||||||||||||||||||
Total Unrealized Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
(Loss) Gain on Commodity Derivative Instruments: | ||||||||||||||||||||||||||
Natural Gas: | ||||||||||||||||||||||||||
Commodity Swaps | ( | ( | ( | ( | ||||||||||||||||||||||
Basis Swaps | ( | ( | ||||||||||||||||||||||||
Total Loss on Commodity Derivative Instruments | $ | ( | $ | ( | $ | ( | $ | ( |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Cash Paid in Settlement of Interest Rate Swaps | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Unrealized Gain on Interest Rate Swaps | ||||||||||||||||||||||||||
Gain (Loss) on Interest Rate Swaps | $ | $ | ( | $ | $ |
Fair Value Measurements at September 30, 2022 | Fair Value Measurements at December 31, 2021 | ||||||||||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Gas Derivatives | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Interest Rate Swaps | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Cash and Cash Equivalents | $ | $ | $ | $ | |||||||||||||||||||
Long-Term Debt (Excluding Debt Issuance Costs)* | $ | $ | $ | $ |
Shale | Coalbed Methane | Other | Consolidated | |||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | $ | $ | $ | (A) | |||||||||||||||||||||
Purchased Gas Revenue | ||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
Other Revenue and Operating Income | (B) | |||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | $ | $ | $ | ( | $ | |||||||||||||||||||||
Total Operating Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Segment Assets | $ | $ | $ | $ | (C) | |||||||||||||||||||||
Depreciation, Depletion and Amortization | $ | $ | $ | $ | ||||||||||||||||||||||
Capital Expenditures | $ | $ | $ | $ |
Shale | Coalbed Methane | Other | Consolidated | |||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | $ | $ | $ | (D) | |||||||||||||||||||||
Purchased Gas Revenue | ||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
Other Revenue and Operating Income | (E) | |||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Total Operating Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Segment Assets | $ | $ | $ | $ | (F) | |||||||||||||||||||||
Depreciation, Depletion and Amortization | $ | $ | $ | $ | ||||||||||||||||||||||
Capital Expenditures | $ | $ | $ | $ |
Shale | Coalbed Methane | Other | Consolidated | |||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | $ | $ | $ | (G) | |||||||||||||||||||||
Purchased Gas Revenue | ||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
Other Revenue and Operating Income | (H) | |||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Total Operating Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Segment Assets | $ | $ | $ | $ | (I) | |||||||||||||||||||||
Depreciation, Depletion and Amortization | $ | $ | $ | $ | ||||||||||||||||||||||
Capital Expenditures | $ | $ | $ | $ |
Shale | Coalbed Methane | Other | Consolidated | |||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | $ | $ | $ | (J) | |||||||||||||||||||||
Purchased Gas Revenue | ||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | ||||||||||||||||||||||
Other Revenue and Operating Income | (K) | |||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Total Operating Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Segment Assets | $ | $ | $ | $ | (L) | |||||||||||||||||||||
Depreciation, Depletion and Amortization | $ | $ | $ | $ | ||||||||||||||||||||||
Capital Expenditures | $ | $ | $ | $ |
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 | $ | $ | $ | $ | |||||||||||||||||||
Loss on Commodity Derivative Instruments | ( | ( | ( | ( | |||||||||||||||||||
Other Operating Income | |||||||||||||||||||||||
Total Consolidated Revenue and Other Operating Income (Loss) | $ | $ | ( | $ | ( | $ | ( |
2022 | 2023 | |||||||||||||
Volumes Hedged (Bcf), as of 10/6/22 | 474.7(1)(2) | 421.9 |
For the Three Months Ended September 30, | |||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
Total Revenue and Other Operating Income (Loss) | $ | 117 | $ | (880) | |||||||
Add (Deduct): | |||||||||||
Purchased Gas Revenue | (32) | (16) | |||||||||
Unrealized Loss on Commodity Derivative Instruments | 411 | 1,376 | |||||||||
Other Revenue and Operating Income | (20) | (25) | |||||||||
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | $ | 476 | $ | 455 | |||||||
Total Operating Expense | $ | 326 | $ | 305 | |||||||
Add (Deduct): | |||||||||||
Depreciation, Depletion and Amortization (DD&A) - Corporate | (3) | (4) | |||||||||
Exploration and Production Related Other Costs | (1) | (3) | |||||||||
Purchased Gas Costs | (32) | (14) | |||||||||
Selling, General and Administrative Costs | (28) | (25) | |||||||||
Other Operating Expense | (22) | (21) | |||||||||
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1 | $ | 240 | $ | 238 |
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Variance | |||||||||||||||||||||||||||||||||
in Millions | Per Mcfe | in Millions | Per Mcfe | in Millions | Per Mcfe | ||||||||||||||||||||||||||||||
Total Sales Volumes (Bcfe)* | 146.4 | 153.5 | (7.1) | ||||||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Revenue | $ | 1,127 | $ | 8.04 | $ | 586 | $ | 3.88 | $ | 541 | $ | 4.16 | |||||||||||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas | (651) | (4.79) | (131) | (0.92) | (520) | (3.87) | |||||||||||||||||||||||||||||
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | 476 | 3.25 | 455 | 2.96 | 21 | 0.29 | |||||||||||||||||||||||||||||
Lease Operating Expense | 19 | 0.13 | 11 | 0.07 | 8 | 0.06 | |||||||||||||||||||||||||||||
Production, Ad Valorem, and Other Fees | 13 | 0.09 | 10 | 0.06 | 3 | 0.03 | |||||||||||||||||||||||||||||
Transportation, Gathering and Compression | 97 | 0.66 | 91 | 0.59 | 6 | 0.07 | |||||||||||||||||||||||||||||
Depreciation, Depletion and Amortization (DD&A) | 111 | 0.76 | 126 | 0.83 | (15) | (0.07) | |||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure | 240 | 1.64 | 238 | 1.55 | 2 | 0.09 | |||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Production Margin, a Non-GAAP Financial Measure | $ | 236 | $ | 1.61 | $ | 217 | $ | 1.41 | $ | 19 | $ | 0.20 |
For the Three Months Ended September 30, | ||||||||||||||||||||||||||
in thousands (unless noted) | 2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||||
LIQUIDS | ||||||||||||||||||||||||||
NGL: | ||||||||||||||||||||||||||
Sales Volume (MMcfe) | 10,136 | 10,145 | (9) | (0.1) | % | |||||||||||||||||||||
Sales Volume (Mbbls) | 1,689 | 1,691 | (2) | (0.1) | % | |||||||||||||||||||||
Gross Price ($/Bbl) | $ | 36.30 | $ | 37.14 | $ | (0.84) | (2.3) | % | ||||||||||||||||||
Gross NGL Revenue | $ | 61,281 | $ | 62,762 | $ | (1,481) | (2.4) | % | ||||||||||||||||||
Oil/Condensate: | ||||||||||||||||||||||||||
Sales Volume (MMcfe) | 204 | 831 | (627) | (75.5) | % | |||||||||||||||||||||
Sales Volume (Mbbls) | 34 | 138 | (104) | (75.4) | % | |||||||||||||||||||||
Gross Price ($/Bbl) | $ | 88.44 | $ | 59.97 | $ | 28.47 | 47.5 | % | ||||||||||||||||||
Gross Oil/Condensate Revenue | $ | 3,003 | $ | 8,302 | $ | (5,299) | (63.8) | % | ||||||||||||||||||
NATURAL GAS | ||||||||||||||||||||||||||
Sales Volume (MMcf) | 136,019 | 142,541 | (6,522) | (4.6) | % | |||||||||||||||||||||
Sales Price ($/Mcf) | $ | 7.82 | $ | 3.61 | $ | 4.21 | 116.6 | % | ||||||||||||||||||
Gross Natural Gas Revenue | $ | 1,063,057 | $ | 514,821 | $ | 548,236 | 106.5 | % | ||||||||||||||||||
Hedging Impact ($/Mcf) | $ | (4.79) | $ | (0.92) | $ | (3.87) | (420.7) | % | ||||||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement | $ | (651,199) | $ | (131,091) | $ | (520,108) | 396.8 | % |
For the Three Months Ended | Difference to Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Shale | CBM | Other | Total | Shale | CBM | Other | Total | |||||||||||||||||||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | 1,030 | $ | 96 | $ | 1 | $ | 1,127 | $ | 494 | $ | 47 | $ | — | $ | 541 | |||||||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | (602) | (49) | (411) | (1,062) | (483) | (37) | 965 | 445 | |||||||||||||||||||||||||||||||||||||||
Purchased Gas Revenue | — | — | 32 | 32 | — | — | 16 | 16 | |||||||||||||||||||||||||||||||||||||||
Other Revenue and Operating Income | 16 | — | 4 | 20 | (3) | — | (2) | (5) | |||||||||||||||||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | 444 | 47 | (374) | 117 | 8 | 10 | 979 | 997 | |||||||||||||||||||||||||||||||||||||||
Lease Operating Expense | 15 | 4 | — | 19 | 7 | 1 | — | 8 | |||||||||||||||||||||||||||||||||||||||
Production, Ad Valorem, and Other Fees | 10 | 4 | (1) | 13 | 2 | 2 | (1) | 3 | |||||||||||||||||||||||||||||||||||||||
Transportation, Gathering and Compression | 84 | 12 | 1 | 97 | 5 | 1 | — | 6 | |||||||||||||||||||||||||||||||||||||||
Depreciation, Depletion and Amortization | 97 | 13 | 4 | 114 | (15) | (1) | — | (16) | |||||||||||||||||||||||||||||||||||||||
Exploration and Production Related Other Costs | — | — | 1 | 1 | — | — | (2) | (2) | |||||||||||||||||||||||||||||||||||||||
Purchased Gas Costs | — | — | 32 | 32 | — | — | 18 | 18 | |||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative Costs | — | — | 28 | 28 | — | — | 3 | 3 | |||||||||||||||||||||||||||||||||||||||
Other Operating Expense | — | — | 22 | 22 | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||
Total Operating Expense | 206 | 33 | 87 | 326 | (1) | 3 | 19 | 21 | |||||||||||||||||||||||||||||||||||||||
Other Expense | — | — | 2 | 2 | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Loss (Gain) on Asset Sales and Abandonments, net | — | — | 12 | 12 | — | — | 24 | 24 | |||||||||||||||||||||||||||||||||||||||
Loss on Debt Extinguishment | — | — | 10 | 10 | — | — | (9) | (9) | |||||||||||||||||||||||||||||||||||||||
Interest Expense | — | — | 34 | 34 | — | — | (3) | (3) | |||||||||||||||||||||||||||||||||||||||
Total Other Expense | — | — | 58 | 58 | — | — | 11 | 11 | |||||||||||||||||||||||||||||||||||||||
Total Costs and Expenses | 206 | 33 | 145 | 384 | (1) | 3 | 30 | 32 | |||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | 238 | $ | 14 | $ | (519) | $ | (267) | $ | 9 | $ | 7 | $ | 949 | $ | 965 |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Shale Gas Sales Volumes (Bcf) | 125.2 | 130.3 | (5.1) | (3.9) | % | ||||||||||||||||||
NGLs Sales Volumes (Bcfe)* | 10.1 | 10.1 | — | — | % | ||||||||||||||||||
Oil/Condensate Sales Volumes (Bcfe)* | 0.2 | 0.8 | (0.6) | (75.0) | % | ||||||||||||||||||
Total Shale Sales Volumes (Bcfe)* | 135.5 | 141.2 | (5.7) | (4.0) | % | ||||||||||||||||||
Average Sales Price - Natural Gas (per Mcf) | $ | 7.72 | $ | 3.57 | $ | 4.15 | 116.2 | % | |||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas (per Mcf) | $ | (4.81) | $ | (0.92) | $ | (3.89) | (422.8) | % | |||||||||||||||
Average Sales Price - NGLs (per Mcfe)* | $ | 6.05 | $ | 6.19 | $ | (0.14) | (2.3) | % | |||||||||||||||
Average Sales Price - Oil/Condensate (per Mcfe)* | $ | 14.79 | $ | 9.99 | $ | 4.80 | 48.0 | % | |||||||||||||||
Total Average Shale Sales Price (per Mcfe) | $ | 3.16 | $ | 2.95 | $ | 0.21 | 7.1 | % | |||||||||||||||
Average Shale Lease Operating Expenses (per Mcfe) | 0.11 | 0.06 | 0.05 | 83.3 | % | ||||||||||||||||||
Average Shale Production, Ad Valorem and Other Fees (per Mcfe) | 0.07 | 0.06 | 0.01 | 16.7 | % | ||||||||||||||||||
Average Shale Transportation, Gathering and Compression Costs (per Mcfe) | 0.62 | 0.56 | 0.06 | 10.7 | % | ||||||||||||||||||
Average Shale Depreciation, Depletion and Amortization Costs (per Mcfe) | 0.72 | 0.78 | (0.06) | (7.7) | % | ||||||||||||||||||
Total Average Shale Production Costs (per Mcfe) | $ | 1.52 | $ | 1.46 | $ | 0.06 | 4.1 | % | |||||||||||||||
Total Average Shale Production Margin (per Mcfe) | $ | 1.64 | $ | 1.49 | $ | 0.15 | 10.1 | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
CBM Gas Sales Volumes (Bcf) | 10.7 | 12.2 | (1.5) | (12.3) | % | ||||||||||||||||||
Average Sales Price - Gas (per Mcf) | $ | 8.98 | $ | 4.01 | $ | 4.97 | 123.9 | % | |||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas (per Mcf) | $ | (4.56) | $ | (0.95) | $ | (3.61) | (380.0) | % | |||||||||||||||
Total Average CBM Sales Price (per Mcf) | $ | 4.42 | $ | 3.06 | $ | 1.36 | 44.4 | % | |||||||||||||||
Average CBM Lease Operating Expenses (per Mcf) | 0.41 | 0.26 | 0.15 | 57.7 | % | ||||||||||||||||||
Average CBM Production, Ad Valorem and Other Fees (per Mcf) | 0.36 | 0.15 | 0.21 | 140.0 | % | ||||||||||||||||||
Average CBM Transportation, Gathering and Compression Costs (per Mcf) | 1.13 | 0.91 | 0.22 | 24.2 | % | ||||||||||||||||||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf) | 1.21 | 1.14 | 0.07 | 6.1 | % | ||||||||||||||||||
Total Average CBM Production Costs (per Mcf) | $ | 3.11 | $ | 2.46 | $ | 0.65 | 26.4 | % | |||||||||||||||
Total Average CBM Production Margin (per Mcf) | $ | 1.31 | $ | 0.60 | $ | 0.71 | 118.3 | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Other Gas Sales Volumes (Bcf) | 0.2 | 0.1 | 0.1 | 100.0 | % | ||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Purchased Gas Sales Volumes (in Bcf) | 9.1 | 3.8 | 5.3 | 139.5 | % | ||||||||||||||||||
Average Sales Price (per Mcf) | $ | 3.50 | $ | 4.33 | $ | (0.83) | (19.2) | % | |||||||||||||||
Purchased Gas Average Cost (per Mcf) | $ | 3.57 | $ | 3.77 | $ | (0.20) | (5.3) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Water Income | $ | 1 | $ | 2 | $ | (1) | (50.0) | % | |||||||||||||||
Excess Firm Transportation Income | 2 | 3 | (1) | (33.3) | % | ||||||||||||||||||
Equity Income from Affiliates | 1 | 1 | — | — | % | ||||||||||||||||||
Total Other Operating Income | $ | 4 | $ | 6 | $ | (2) | (33.3) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Lease Expiration Costs | $ | — | $ | 2 | $ | (2) | (100.0) | % | |||||||||||||||
Land Rentals | 1 | 1 | — | — | % | ||||||||||||||||||
Total Exploration and Production Related Other Costs | $ | 1 | $ | 3 | $ | (2) | (66.7) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Salaries, Wages and Employee Benefits | $ | 8 | $ | 6 | $ | 2 | 33.3 | % | |||||||||||||||
Long-Term Equity-Based Compensation (Non-Cash) | 4 | 3 | 1 | 33.3 | % | ||||||||||||||||||
Short-Term Incentive Compensation | 3 | 3 | — | — | % | ||||||||||||||||||
Other | 13 | 13 | — | — | % | ||||||||||||||||||
Total SG&A | $ | 28 | $ | 25 | $ | 3 | 12.0 | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Unutilized Firm Transportation and Processing Fees | $ | 17 | $ | 13 | $ | 4 | 30.8 | % | |||||||||||||||
Virginia Flood Expense | 2 | — | 2 | 100.0 | % | ||||||||||||||||||
Insurance Expense | 1 | 1 | — | — | % | ||||||||||||||||||
Litigation Settlements | — | 5 | (5) | (100.0) | % | ||||||||||||||||||
Other | 2 | 2 | — | — | % | ||||||||||||||||||
Total Other Operating Expense | $ | 22 | $ | 21 | $ | 1 | 4.8 | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Other Income | |||||||||||||||||||||||
Right-of-Way Sales | $ | 1 | $ | — | $ | 1 | 100.0 | % | |||||||||||||||
Other | — | 3 | (3) | (100.0) | % | ||||||||||||||||||
Total Other Income | $ | 1 | $ | 3 | $ | (2) | (66.7) | % | |||||||||||||||
Other Expense | |||||||||||||||||||||||
Professional Services | $ | — | $ | 2 | $ | (2) | (100.0) | % | |||||||||||||||
Bank Fees | 3 | 3 | — | — | % | ||||||||||||||||||
Other Corporate Expense | — | 1 | (1) | (100.0) | % | ||||||||||||||||||
Total Other Expense | $ | 3 | $ | 6 | $ | (3) | (50.0) | % | |||||||||||||||
Total Other Expense | $ | 2 | $ | 3 | $ | (1) | (33.3) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Total Interest Expense | $ | 34 | $ | 37 | $ | (3) | (8.1) | % |
For the Three Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Total Company Loss Before Income Tax | $ | (267) | $ | (1,232) | $ | 965 | 78.3 | % | |||||||||||||||
Income Tax Expense (Benefit) | $ | 160 | $ | (360) | $ | 520 | 144.4 | % | |||||||||||||||
Effective Income Tax Rate | (60.1) | % | 29.2 | % | (89.3) | % |
For the Nine Months Ended September 30, | |||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
Total Revenue and Other Operating Loss | $ | (376) | $ | (534) | |||||||
Add (Deduct): | |||||||||||
Purchased Gas Revenue | (124) | (67) | |||||||||
Unrealized Loss on Commodity Derivative Instruments | 1,989 | 1,874 | |||||||||
Other Revenue and Operating Income | (66) | (75) | |||||||||
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | $ | 1,423 | $ | 1,198 | |||||||
Total Operating Expense | $ | 978 | $ | 885 | |||||||
Add (Deduct): | |||||||||||
Depreciation, Depletion and Amortization (DD&A) - Corporate | (9) | (8) | |||||||||
Exploration and Production Related Other Costs | (7) | (8) | |||||||||
Purchased Gas Costs | (123) | (61) | |||||||||
Selling, General and Administrative Costs | (90) | (77) | |||||||||
Other Operating Expense | (54) | (52) | |||||||||
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1 | $ | 695 | $ | 679 |
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | Variance | |||||||||||||||||||||||||||||||||
in Millions | Per Mcfe | in Millions | Per Mcfe | in Millions | Per Mcfe | ||||||||||||||||||||||||||||||
Total Sales Volumes (Bcfe)* | 439.6 | 432.1 | 7.5 | ||||||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Revenue | $ | 2,875 | $ | 6.77 | $ | 1,337 | $ | 3.11 | $ | 1538 | $ | 3.66 | |||||||||||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas | (1,452) | (3.53) | (139) | (0.34) | (1,313) | (3.19) | |||||||||||||||||||||||||||||
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | 1,423 | 3.24 | 1,198 | 2.77 | 225 | 0.47 | |||||||||||||||||||||||||||||
Lease Operating Expense | 49 | 0.11 | 31 | 0.07 | 18 | 0.04 | |||||||||||||||||||||||||||||
Production, Ad Valorem, and Other Fees | 33 | 0.08 | 23 | 0.06 | 10 | 0.02 | |||||||||||||||||||||||||||||
Transportation, Gathering and Compression | 273 | 0.62 | 252 | 0.58 | 21 | 0.04 | |||||||||||||||||||||||||||||
Depreciation, Depletion and Amortization (DD&A) | 340 | 0.78 | 373 | 0.86 | (33) | (0.08) | |||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure | 695 | 1.59 | 679 | 1.57 | 16 | 0.02 | |||||||||||||||||||||||||||||
Natural Gas, NGL and Oil Production Margin, a Non-GAAP Financial Measure | $ | 728 | $ | 1.65 | $ | 519 | $ | 1.20 | $ | 209 | $ | 0.45 |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
in thousands (unless noted) | 2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||||
LIQUIDS | ||||||||||||||||||||||||||
NGL: | ||||||||||||||||||||||||||
Sales Volume (MMcfe) | 27,487 | 26,082 | 1,405 | 5.4 | % | |||||||||||||||||||||
Sales Volume (Mbbls) | 4,581 | 4,347 | 234 | 5.4 | % | |||||||||||||||||||||
Gross Price ($/Bbl) | $ | 41.46 | $ | 31.32 | $ | 10.14 | 32.4 | % | ||||||||||||||||||
Gross NGL Revenue | $ | 189,850 | $ | 136,176 | $ | 53,674 | 39.4 | % | ||||||||||||||||||
Oil/Condensate: | ||||||||||||||||||||||||||
Sales Volume (MMcfe) | 902 | 1,922 | (1,020) | (53.1) | % | |||||||||||||||||||||
Sales Volume (Mbbls) | 150 | 320 | (170) | (53.1) | % | |||||||||||||||||||||
Gross Price ($/Bbl) | $ | 86.94 | $ | 53.80 | $ | 33.14 | 61.6 | % | ||||||||||||||||||
Gross Oil/Condensate Revenue | $ | 13,063 | $ | 17,234 | $ | (4,171) | (24.2) | % | ||||||||||||||||||
NATURAL GAS | ||||||||||||||||||||||||||
Sales Volume (MMcf) | 411,163 | 404,055 | 7,108 | 1.8 | % | |||||||||||||||||||||
Sales Price ($/Mcf) | $ | 6.50 | $ | 2.93 | $ | 3.57 | 121.8 | % | ||||||||||||||||||
Gross Natural Gas Revenue | $ | 2,672,458 | $ | 1,183,178 | $ | 1,489,280 | 125.9 | % | ||||||||||||||||||
Hedging Impact ($/Mcf) | $ | (3.53) | $ | (0.34) | $ | (3.19) | (938.2) | % | ||||||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement | $ | (1,452,432) | $ | (139,045) | $ | (1,313,387) | (944.6) | % |
For the Nine Months Ended | Difference to Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Shale | CBM | Other | Total | Shale | CBM | Other | Total | |||||||||||||||||||||||||||||||||||||||
Natural Gas, NGLs and Oil Revenue | $ | 2,634 | $ | 239 | $ | 2 | $ | 2,875 | $ | 1,423 | $ | 115 | $ | — | $ | 1,538 | |||||||||||||||||||||||||||||||
Loss on Commodity Derivative Instruments | (1,340) | (111) | (1,990) | (3,441) | (1,213) | (99) | (116) | (1,428) | |||||||||||||||||||||||||||||||||||||||
Purchased Gas Revenue | — | — | 124 | 124 | — | — | 57 | 57 | |||||||||||||||||||||||||||||||||||||||
Other Revenue and Operating Income | 51 | — | 15 | 66 | (6) | — | (3) | (9) | |||||||||||||||||||||||||||||||||||||||
Total Revenue and Other Operating Income (Loss) | 1,345 | 128 | (1,849) | (376) | 204 | 16 | (62) | 158 | |||||||||||||||||||||||||||||||||||||||
Lease Operating Expense | 37 | 12 | — | 49 | 16 | 3 | (1) | 18 | |||||||||||||||||||||||||||||||||||||||
Production, Ad Valorem, and Other Fees | 24 | 9 | — | 33 | 5 | 5 | — | 10 | |||||||||||||||||||||||||||||||||||||||
Transportation, Gathering and Compression | 238 | 35 | — | 273 | 16 | 5 | — | 21 | |||||||||||||||||||||||||||||||||||||||
Depreciation, Depletion and Amortization | 294 | 39 | 16 | 349 | (31) | (5) | 4 | (32) | |||||||||||||||||||||||||||||||||||||||
Exploration and Production Related Other Costs | — | — | 7 | 7 | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Purchased Gas Costs | — | — | 123 | 123 | — | — | 62 | 62 | |||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative Costs | — | — | 90 | 90 | — | — | 13 | 13 | |||||||||||||||||||||||||||||||||||||||
Other Operating Expense | — | — | 54 | 54 | — | — | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Total Operating Expense | 593 | 95 | 290 | 978 | 6 | 8 | 79 | 93 | |||||||||||||||||||||||||||||||||||||||
Other Expense | — | — | 7 | 7 | — | — | (6) | (6) | |||||||||||||||||||||||||||||||||||||||
Gain on Asset Sales and Abandonments, net | — | — | (8) | (8) | — | — | 14 | 14 | |||||||||||||||||||||||||||||||||||||||
Loss on Debt Extinguishment | — | — | 23 | 23 | — | — | 4 | 4 | |||||||||||||||||||||||||||||||||||||||
Interest Expense | — | — | 92 | 92 | — | — | (22) | (22) | |||||||||||||||||||||||||||||||||||||||
Total Other Expense | — | — | 114 | 114 | — | — | (10) | (10) | |||||||||||||||||||||||||||||||||||||||
Total Costs and Expenses | 593 | 95 | 404 | 1,092 | 6 | 8 | 69 | 83 | |||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Before Income Tax | $ | 752 | $ | 33 | $ | (2,253) | $ | (1,468) | $ | 198 | $ | 8 | $ | (131) | $ | 75 |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Shale Gas Sales Volumes (Bcf) | 377.7 | 366.4 | 11.3 | 3.1 | % | ||||||||||||||||||
NGLs Sales Volumes (Bcfe)* | 27.5 | 26.1 | 1.4 | 5.4 | % | ||||||||||||||||||
Oil/Condensate Sales Volumes (Bcfe)* | 0.9 | 1.9 | (1.0) | (52.6) | % | ||||||||||||||||||
Total Shale Sales Volumes (Bcfe)* | 406.1 | 394.4 | 11.7 | 3.0 | % | ||||||||||||||||||
Average Sales Price - Natural Gas (per Mcf) | $ | 6.44 | $ | 2.89 | $ | 3.55 | 122.8 | % | |||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas (per Mcf) | $ | (3.55) | $ | (0.35) | $ | (3.20) | (914.3) | % | |||||||||||||||
Average Sales Price - NGLs (per Mcfe)* | $ | 6.91 | $ | 5.22 | $ | 1.69 | 32.4 | % | |||||||||||||||
Average Sales Price - Oil/Condensate (per Mcfe)* | $ | 14.49 | $ | 8.96 | $ | 5.53 | 61.7 | % | |||||||||||||||
Total Average Shale Sales Price (per Mcfe) | $ | 3.19 | $ | 2.75 | $ | 0.44 | 16.0 | % | |||||||||||||||
Average Shale Lease Operating Expenses (per Mcfe) | 0.09 | 0.05 | 0.04 | 80.0 | % | ||||||||||||||||||
Average Shale Production, Ad Valorem and Other Fees (per Mcfe) | 0.06 | 0.05 | 0.01 | 20.0 | % | ||||||||||||||||||
Average Shale Transportation, Gathering and Compression Costs (per Mcfe) | 0.59 | 0.56 | 0.03 | 5.4 | % | ||||||||||||||||||
Average Shale Depreciation, Depletion and Amortization Costs (per Mcfe) | 0.73 | 0.83 | (0.10) | (12.0) | % | ||||||||||||||||||
Total Average Shale Production Costs (per Mcfe) | $ | 1.47 | $ | 1.49 | $ | (0.02) | (1.3) | % | |||||||||||||||
Total Average Shale Production Margin (per Mcfe) | $ | 1.72 | $ | 1.26 | $ | 0.46 | 36.5 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
CBM Gas Sales Volumes (Bcf) | 33.2 | 37.5 | (4.3) | (11.5) | % | ||||||||||||||||||
Average Sales Price - Natural Gas (per Mcf) | $ | 7.21 | $ | 3.32 | $ | 3.89 | 117.2 | % | |||||||||||||||
Loss on Commodity Derivative Instruments - Cash Settlement - Gas (per Mcf) | $ | (3.36) | $ | (0.33) | $ | (3.03) | (918.2) | % | |||||||||||||||
Total Average CBM Sales Price (per Mcf) | $ | 3.85 | $ | 2.99 | $ | 0.86 | 28.8 | % | |||||||||||||||
Average CBM Lease Operating Expenses (per Mcf) | 0.38 | 0.25 | 0.13 | 52.0 | % | ||||||||||||||||||
Average CBM Production, Ad Valorem and Other Fees (per Mcf) | 0.27 | 0.12 | 0.15 | 125.0 | % | ||||||||||||||||||
Average CBM Transportation, Gathering and Compression Costs (per Mcf) | 1.05 | 0.78 | 0.27 | 34.6 | % | ||||||||||||||||||
Average CBM Depreciation, Depletion and Amortization Costs (per Mcf) | 1.17 | 1.17 | — | — | % | ||||||||||||||||||
Total Average CBM Production Costs (per Mcf) | $ | 2.87 | $ | 2.32 | $ | 0.55 | 23.7 | % | |||||||||||||||
Total Average CBM Production Margin (per Mcf) | $ | 0.98 | $ | 0.67 | $ | 0.31 | 46.3 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Other Gas Sales Volumes (Bcf) | 0.3 | 0.2 | 0.1 | 50.0 | % | ||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | Variance | Percent Change | ||||||||||||||||||||
Purchased Gas Sales Volumes (in Bcf) | 19.9 | 20.5 | (0.6) | (2.9) | % | ||||||||||||||||||
Average Sales Price (per Mcf) | $ | 6.25 | $ | 3.25 | $ | 3.00 | 92.3 | % | |||||||||||||||
Purchased Gas Average Cost (per Mcf) | $ | 6.20 | $ | 2.99 | $ | 3.21 | 107.4 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Water Income | $ | 3 | $ | 6 | $ | (3) | (50.0) | % | |||||||||||||||
Excess Firm Transportation Income | 8 | 9 | (1) | (11.1) | % | ||||||||||||||||||
Equity Income from Affiliates | 3 | 3 | — | — | % | ||||||||||||||||||
Other | 1 | — | 1 | 100.0 | % | ||||||||||||||||||
Total Other Operating Income | $ | 15 | $ | 18 | $ | (3) | (16.7) | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Lease Expiration Costs | $ | 1 | $ | 5 | $ | (4) | (80.0) | % | |||||||||||||||
Permitting Expense | — | 1 | (1) | (100.0) | % | ||||||||||||||||||
Land Rentals | 3 | 2 | 1 | 50.0 | % | ||||||||||||||||||
Seismic Activity | 3 | — | 3 | 100.0 | % | ||||||||||||||||||
Total Exploration and Production Related Other Costs | $ | 7 | $ | 8 | $ | (1) | (12.5) | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Contributions and Advertising | $ | 4 | $ | — | $ | 4 | 100.0 | % | |||||||||||||||
Salaries, Wages and Employee Benefits | 24 | 20 | 4 | 20.0 | % | ||||||||||||||||||
Short-Term Incentive Compensation | 10 | 8 | 2 | 25.0 | % | ||||||||||||||||||
Long-Term Equity-Based Compensation (Non-Cash) | 15 | 14 | 1 | 7.1 | % | ||||||||||||||||||
Other | 37 | 35 | 2 | 5.7 | % | ||||||||||||||||||
Total SG&A | $ | 90 | $ | 77 | $ | 13 | 16.9 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Unutilized Firm Transportation and Processing Fees | $ | 44 | $ | 41 | $ | 3 | 7.3 | % | |||||||||||||||
Virginia Flood Expense | 2 | — | 2 | 100.0 | % | ||||||||||||||||||
Insurance Expense | 2 | 1 | 1 | 100.0 | % | ||||||||||||||||||
Water Expense | 1 | 1 | — | — | % | ||||||||||||||||||
Litigation Settlements | 3 | 6 | (3) | (50.0) | % | ||||||||||||||||||
Other | 2 | 3 | (1) | (33.3) | % | ||||||||||||||||||
Total Other Operating Expense | $ | 54 | $ | 52 | $ | 2 | 3.8 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Other Income | |||||||||||||||||||||||
Right-of-Way Sales | $ | 3 | $ | 2 | $ | 1 | 50.0 | % | |||||||||||||||
Other | 4 | 3 | 1 | 33.3 | % | ||||||||||||||||||
Total Other Income | $ | 7 | $ | 5 | $ | 2 | 40.0 | % | |||||||||||||||
Other Expense | |||||||||||||||||||||||
Professional Services | $ | 3 | $ | 5 | $ | (2) | (40.0) | % | |||||||||||||||
Bank Fees | 8 | 9 | (1) | (11.1) | % | ||||||||||||||||||
Other Corporate Expense | 3 | 4 | (1) | (25.0) | % | ||||||||||||||||||
Total Other Expense | $ | 14 | $ | 18 | $ | (4) | (22.2) | % | |||||||||||||||
Total Other Expense | $ | 7 | $ | 13 | $ | (6) | (46.2) | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Total Interest Expense | $ | 92 | $ | 114 | $ | (22) | (19.3) | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
(in millions) | 2022 | 2021 | Variance | Percent Change | |||||||||||||||||||
Total Company Loss Before Income Tax | $ | (1,468) | $ | (1,543) | $ | 75 | (4.9) | % | |||||||||||||||
Income Tax Benefit | $ | (152) | $ | (414) | $ | 262 | (63.3) | % | |||||||||||||||
Effective Income Tax Rate | 10.3 | % | 26.8 | % | (16.5) | % |
For the Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Cash Provided by Operating Activities | $ | 793 | $ | 673 | $ | 120 | |||||||||||
Cash Used in Investing Activities | $ | (362) | $ | (325) | $ | (37) | |||||||||||
Cash Used in Financing Activities | $ | (433) | $ | (149) | $ | (284) |
Payments due by Year | |||||||||||||||||||||||||||||
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | |||||||||||||||||||||||||
Purchase Order Firm Commitments | $ | 485 | $ | — | $ | — | $ | — | $ | 485 | |||||||||||||||||||
Gas Firm Transportation and Processing | 255,928 | 459,860 | 378,664 | 780,633 | 1,875,085 | ||||||||||||||||||||||||
Long-Term Debt | 323,734 | — | 545,201 | 1,389,375 | 2,258,310 | ||||||||||||||||||||||||
Interest on Long-Term Debt | 120,646 | 255,836 | 223,382 | 231,907 | 831,771 | ||||||||||||||||||||||||
Finance Lease Obligations | 686 | 888 | 430 | 57 | 2,061 | ||||||||||||||||||||||||
Interest on Finance Lease Obligations | 101 | 162 | 102 | 19 | 384 | ||||||||||||||||||||||||
Operating Lease Obligations | 48,710 | 91,644 | 30,701 | 20,946 | 192,001 | ||||||||||||||||||||||||
Interest on Operating Lease Obligations | 7,779 | 9,396 | 3,007 | 2,097 | 22,279 | ||||||||||||||||||||||||
Long-Term Liabilities—Employee Related (a) | 2,376 | 4,400 | 4,792 | 32,405 | 43,973 | ||||||||||||||||||||||||
Other Long-Term Liabilities (b) | 263,372 | 10,000 | 10,000 | 67,243 | 350,615 | ||||||||||||||||||||||||
Total Contractual Obligations (c) | $ | 1,023,817 | $ | 832,186 | $ | 1,196,279 | $ | 2,524,682 | $ | 5,576,964 |
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total Year | |||||||||||||||||||||||||
2022 Fixed Price Volumes* | |||||||||||||||||||||||||||||
Hedged Bcf | N/A | N/A | N/A | 118.5 | 118.5 | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | N/A | N/A | N/A | $ | 2.41 | $ | 2.41 | ||||||||||||||||||||||
2023 Fixed Price Volumes | |||||||||||||||||||||||||||||
Hedged Bcf | 101.3 | 112.8 | 114.1 | 114.1 | 421.9** | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | $ | 2.67 | $ | 2.43 | $ | 2.43 | $ | 2.49 | $ | 2.47 | |||||||||||||||||||
2024 Fixed Price Volumes | |||||||||||||||||||||||||||||
Hedged Bcf | 95.6 | 95.1 | 96.2 | 96.2 | 372.2** | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | $ | 2.33 | $ | 2.39 | $ | 2.39 | $ | 2.39 | $ | 2.36 | |||||||||||||||||||
2025 Fixed Price Volumes | |||||||||||||||||||||||||||||
Hedged Bcf | 89.8 | 90.8 | 91.8 | 92.4 | 364.8 | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | $ | 2.39 | $ | 2.38 | $ | 2.38 | $ | 2.39 | $ | 2.39 | |||||||||||||||||||
2026 Fixed Price Volumes | |||||||||||||||||||||||||||||
Hedged Bcf | 69.1 | 79.1 | 79.8 | 79.8 | 307.8 | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | $ | 2.55 | $ | 2.62 | $ | 2.62 | $ | 2.62 | $ | 2.60 | |||||||||||||||||||
2027 Fixed Price Volumes | |||||||||||||||||||||||||||||
Hedged Bcf | 27.8 | 28.1 | 28.4 | 28.5 | 112.8 | ||||||||||||||||||||||||
Weighted Average Hedge Price per Mcf | $ | 3.34 | $ | 3.37 | $ | 3.37 | $ | 3.49 | $ | 3.39 |
For the Three Months Ended | |||||
Purchased Basis Swaps | December 31, 2022 | ||||
Hedged Bcf | 2.3 | ||||
Weighted Average Fixed Price per Mcf | $ | (1.13) |
ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (000's omitted) | ||||||||||
July 1, 2022- July 31, 2022 | 2,758,453 | $ | 16.66 | 2,758,025 | $ | 747,734 | ||||||||
August 1, 2022- August 31, 2022 | 2,157,870 | $ | 16.68 | 2,157,870 | $ | 711,748 | ||||||||
September 1, 2022- September 30, 2022 | 3,432,900 | $ | 16.01 | 3,432,900 | $ | 656,789 | ||||||||
Total | 8,349,223 | 8,348,795 |
10.1 | ||||||||
10.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CNX RESOURCES CORPORATION | |||||||||||
By: | /S/ NICHOLAS J. DEIULIIS | ||||||||||
Nicholas J. DeIuliis | |||||||||||
Director, Chief Executive Officer and President (Duly Authorized Officer and Principal Executive Officer) | |||||||||||
By: | /S/ ALAN K. SHEPARD | ||||||||||
Alan K. Shepard | |||||||||||
Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer) | |||||||||||
By: | /S/ JASON L. MUMFORD | ||||||||||
Jason L. Mumford | |||||||||||
Vice President and Controller |
Date: | October 27, 2022 | |||||||
/s/ Nicholas J. DeIuliis | ||||||||
Nicholas J. DeIuliis | ||||||||
Chief Executive Officer and President and Director (Duly Authorized Officer and Principal Executive Officer) |
Date: | October 27, 2022 | |||||||
/s/ Alan K. Shepard | ||||||||
Alan K. Shepard | ||||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Date: | October 27, 2022 | |||||||
/s/ Nicholas J. DeIuliis | ||||||||
Nicholas J. DeIuliis | ||||||||
Chief Executive Officer and President and Director (Duly Authorized Officer and Principal Executive Officer) |
Date: | October 27, 2022 | |||||||
/s/ Alan K. Shepard | ||||||||
Alan K. Shepard | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Revenue and Other Operating Income (Loss): | ||||
Loss on Commodity Derivative Instruments | $ (1,062,353) | $ (1,507,270) | $ (3,441,389) | $ (2,012,714) |
Other Revenue and Operating Income | 20,335 | 24,783 | 66,267 | 75,227 |
Total Revenue and Other Operating Income (Loss) | 117,061 | (880,261) | (375,619) | (534,399) |
Operating Expense | ||||
Lease Operating Expense | 19,239 | 11,193 | 48,920 | 30,709 |
Production, Ad Valorem and Other Fees | 13,481 | 9,552 | 33,366 | 22,965 |
Depreciation, Depletion and Amortization | 114,167 | 129,734 | 348,970 | 381,284 |
Purchased Gas Costs | 32,309 | 14,192 | 123,167 | 61,153 |
Selling, General, and Administrative Costs | 27,722 | 24,851 | 89,737 | 76,849 |
Other Operating Expense | 21,238 | 21,654 | 53,947 | 52,452 |
Total Operating Expense | 325,473 | 304,858 | 978,468 | 885,372 |
Other Expense | ||||
Other Expense | 1,922 | 3,177 | 6,362 | 13,410 |
Loss (Gain) on Asset Sales and Abandonments, net | 12,077 | (12,446) | (7,558) | (22,506) |
Loss on Debt Extinguishment | 9,953 | 18,653 | 22,934 | 18,653 |
Interest Expense | 34,351 | 37,944 | 92,472 | 113,892 |
Total Other Expense | 58,303 | 47,328 | 114,210 | 123,449 |
Total Costs and Expenses | 383,776 | 352,186 | 1,092,678 | 1,008,821 |
Loss Before Income Tax | (266,715) | (1,232,447) | (1,468,297) | (1,543,220) |
Income Tax Expense (Benefit) | 160,357 | (359,526) | (151,640) | (414,264) |
Net Loss | $ (427,072) | $ (872,921) | $ (1,316,657) | $ (1,128,956) |
Loss per Share | ||||
Basic (in usd per share) | $ (2.28) | $ (4.05) | $ (6.80) | $ (5.17) |
Diluted (in usd per share) | (2.28) | (4.05) | (6.80) | (5.17) |
Dividends Declared (in usd per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Natural Gas, NGLs and Oil Revenue | ||||
Revenue and Other Operating Income (Loss): | ||||
Revenues | $ 1,127,341 | $ 585,915 | $ 2,875,371 | $ 1,336,588 |
Purchased Gas Revenue | ||||
Revenue and Other Operating Income (Loss): | ||||
Revenues | 31,738 | 16,311 | 124,132 | 66,500 |
Transportation, Gathering and Compression | ||||
Operating Expense | ||||
Cost of Goods Sold | 96,632 | 90,609 | 273,275 | 251,881 |
Exploration and Production Related Other Costs | ||||
Operating Expense | ||||
Cost of Goods Sold | $ 685 | $ 3,073 | $ 7,086 | $ 8,079 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Comprehensive Income [Abstract] | ||||
Net Loss | $ (427,072) | $ (872,921) | $ (1,316,657) | $ (1,128,956) |
Other Comprehensive Income: | ||||
Actuarially Determined Long-Term Liability Adjustments (Net of tax: $(48), $(49), $(144), $(145)) | 135 | 136 | 405 | 407 |
Comprehensive Loss | $ (426,937) | $ (872,785) | $ (1,316,252) | $ (1,128,549) |
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Adjustment for Actuarially Determined Liabilities | ||||
Other comprehensive income, tax expense | $ (48) | $ (49) | $ (144) | $ (145) |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
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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) | 183,072,552 | 203,531,320 |
Common Stock, Outstanding (in shares) | 183,072,552 | 203,531,320 |
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 |
Basis of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | BASIS OF PRESENTATION: The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2021 has been derived from the Audited Consolidated Financial Statements at that date but does not include all the notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the Consolidated Financial Statements and related notes for the year ended December 31, 2021 included in CNX Resources Corporation's ("CNX," "CNX Resources," the "Company," "we," "us," or "our") Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on February 10, 2022. Certain amounts in prior periods have been reclassified to conform to the current period presentation. Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statement of cash flows:
Restricted cash at September 30, 2021 consisted of cash held by the Trustee that, pursuant to the indentures governing the CNX Midstream Partners LP Senior Notes due March 2026 at 6.50% ("CNXM Senior Notes due March 2026"), was restricted in its use to fund the redemption of the remaining outstanding CNXM Senior Notes due March 2026 recorded in the Consolidated Balance Sheet as of September 30, 2021 under the terms of the Tender Offer. See Note 9 – Long-Term Debt for more information. Receivables As of September 30, 2022 and December 31, 2021, Accounts Receivable - Trade were $479,088 and $330,122, respectively, and Other Receivables were $5,436 and $8,924, respectively. 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 will be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The following represents activity related to the allowance for credit losses for the nine months ended:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE: Basic earnings per share is computed by dividing net income or net loss 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 2.25% convertible senior notes due May 2026 (the "Convertible Notes") (See Note 9 – 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 conversion of the Convertible Notes are issued (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 anti-dilutive effect. 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 anti-dilutive:
The Convertible Notes, if converted by the holder, may be settled in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Company expects to settle the principal amount of the Convertible Notes in cash. ASU 2020-06 amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method (See Note 9 – Long-Term Debt for more information). The if-converted method assumes the conversion of convertible instruments occurs at the beginning of the reporting period and diluted weighted average shares outstanding includes the common shares issuable upon conversion of the convertible instruments. 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 table below sets forth the share-based awards that have been exercised or released:
The computations for basic and diluted loss per share are as follows: *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 and the potential share settlement impact related to CNX's Convertible Notes are antidilutive.
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Revenue From Contracts With Customers |
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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:
The disaggregated revenue information corresponds with the Company’s segment reporting found in Note 13 – 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 Accounting Standards Codification (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 $42,521 as of September 30, 2022. The Company expects to recognize net revenue of $19,939 in the next 12 months and $17,297 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. Prior-Period Performance Obligations CNX records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas, NGL and oil revenue may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. CNX records the differences between the estimate and the actual amounts received in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and the related accruals, and any identified differences between its revenue estimates and the actual revenue received historically have not been significant. For the three and nine months ended September 30, 2022 and 2021, revenue recognized in the current reporting period related to performance obligations satisfied in a prior reporting period was not material.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: The effective tax rates for the three and nine months ended September 30, 2022 were (60.1)% and 10.3%, respectively. The effective tax rates for the three and nine months ended September 30, 2021 were 29.2% and 26.8%, respectively. The effective tax rate for the three and nine months ended September 30, 2022 differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of assessing the realizability of existing deferred tax assets, including net operating losses, and the related valuation allowance recorded, the partial repurchase of Convertible Notes (see Note 9 – Long-Term Debt for more information), equity compensation and state taxes. The effective tax rate for the three and nine months ended September 30, 2021 differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of federal tax credits, equity compensation and state taxes. The total amount of uncertain tax positions at September 30, 2022 and December 31, 2021 was $82,245 and $67,805, respectively. The increase of $14,440 was the result of additional tax credits claimed on prior years federal income tax returns for which a reserve was recorded for federal tax credits claimed on each respective return. If these uncertain tax positions were recognized, approximately $82,245 and $67,805 would affect CNX's effective tax rate at September 30, 2022 and December 31, 2021, respectively. CNX recognizes accrued interest and penalties related to uncertain tax positions in interest expense and income tax expense, respectively. As of September 30, 2022 and December 31, 2021, CNX had no accrued liabilities for interest and penalties related to uncertain tax positions. CNX and its subsidiaries file federal income tax returns with the United States and tax returns within various states. With few exceptions, the Company is no longer subject to United States federal, state, local, or non-U.S. income tax examinations by tax authorities for the years before 2018. Pennsylvania enacted legislation in July 2022 that, among other things, gradually reduced the corporate net income tax rate over the next several years beginning in 2023 to 8.99% to ultimately 4.99% in 2031. The Company revised the deferred state income tax rates and apportionment factors for several states to reflect, among other things, the recent Pennsylvania legislative change resulting in a decrease to deferred tax expense in the Consolidated Statements of Income. The deferred tax is also comprised of an expense increase relating to valuation allowance assertions against various federal and state deferred tax assets and net operating losses due to the tax accounting treatment of unrealized losses on commodity derivatives.
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Property, Plant and Equipment |
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Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT:
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Goodwill and Other Intangible Assets |
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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, LLC ("Noble") pursuant to which it acquired Noble’s 50% membership interest in CNX Gathering, LLC (then named CONE Gathering LLC) ("CNX Gathering"), 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 CNX Midstream Partners, LP ("CNXM"). 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. The accumulated impairment losses on goodwill were $473,045, resulting in a carrying value of $323,314, at both September 30, 2022 and December 31, 2021. The carrying amount and accumulated amortization of other intangible assets consist of the following:
The customer relationship intangible asset is being amortized on a straight-line basis over approximately 17 years. Amortization expense related to other intangible assets for the three and nine months ended September 30, 2022 was $1,638 and $4,915, respectively. Amortization expense related to other intangible assets for the three and nine months ended September 30, 2021 was $1,638 and $4,914, respectively. The estimated annual amortization expense is expected to approximate $6,552 per year for each of the next five years.
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Revolving Credit Facilities |
9 Months Ended |
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Sep. 30, 2022 | |
Short-Term Debt, Other Disclosure [Abstract] | |
Revolving Credit Facilities | REVOLVING CREDIT FACILITIES: CNX: On May 5, 2022, CNX amended its Third Amended and Restated Credit Agreement dated October 6, 2021, which provides for a senior secured revolving credit facility (as amended, the "CNX Credit Agreement"). Revisions were made to replace LIBOR as a benchmark interest rate with SOFR, or the secured overnight financing rate. Following the amendment, CNX remains the borrower and certain of its subsidiaries (not including CNXM and its subsidiaries) as guarantor loan parties on CNX Credit Agreement. The CNX Credit Agreement replaced the prior CNX revolving credit facility and remains subject to semi-annual redetermination. The CNX Credit Agreement has a $2,250,000 borrowing base and $1,300,000 in elected commitments, including borrowings and letters of credit. The CNX Credit Agreement matures on October 6, 2026, provided that if at any time on or after January 30, 2026 availability under the CNX Credit Agreement minus the aggregate principal amount of any and all such outstanding Convertible Notes is less than 20% of the aggregate commitments under the CNX Credit Agreement (the first such date, the "Springing Maturity Date"), then the CNX Credit Agreement will mature on the Springing Maturity Date. In addition to refinancing all outstanding amounts under the prior CNX revolving 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 SOFR rate plus 1.0%, in each case, plus a margin ranging from 0.75% to 1.75%; or •the one-month SOFR rate plus a margin ranging from 1.85% to 2.85%. The availability under the CNX Credit Agreement, 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 Agreement 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 derivative asset/liability position, and convertible note liability until one year prior to maturity, and borrowings under the revolver, measured quarterly. The calculation of all of the ratios excludes CNX Gathering and CNXM and its subsidiaries. CNX was in compliance with all financial covenants as of September 30, 2022. At September 30, 2022, the CNX Credit Agreement had $44,650 of borrowings outstanding and $172,965 of letters of credit outstanding, leaving $1,082,385 of unused capacity. At December 31, 2021, the CNX Credit Agreement had $192,000 of borrowings outstanding and $184,131 of letters of credit outstanding, leaving $923,869 of unused capacity. CNXM: On May 5, 2022 CNXM amended its Amended and Restated Credit Agreement dated October 6, 2021, which provides for a $600,000 senior secured revolving credit facility (as amended, the "CNXM Credit Agreement") that matures on October 6, 2026. Revisions were made to replace LIBOR as a benchmark interest rate with SOFR, or the secured overnight financing rate. CNXM remains the borrower and certain of its subsidiaries remain as guarantor loan parties on the Amended and Restated Credit Agreement. The CNXM Credit Agreement replaced the prior CNXM revolving credit facility and is not subject to semi-annual redetermination. CNX is not a guarantor under the CNXM Credit Agreement. In addition to refinancing all outstanding amounts under the prior CNXM revolving 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 SOFR rate plus 1.0%, in each case, plus a margin ranging from 1.00% to 2.00%; or •the one-month SOFR rate plus a margin ranging from 2.10% to 3.10%. 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 the CNXM Credit Agreement. CNXM was in compliance with all financial covenants as of September 30, 2022. At September 30, 2022, the CNXM Credit Agreement had $148,150 of borrowings outstanding and $30 of letters of credit outstanding, leaving $451,820 of unused capacity. At December 31, 2021, the CNXM Credit Agreement had $185,000 of borrowings outstanding and $30 of letters of credit outstanding, leaving $414,970 of unused capacity.
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Other Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES:
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Long-Term Debt |
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Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | LONG-TERM DEBT:
*CNX is not a guarantor of CNXM's 4.75% Senior Notes due April 2030 or CNXM's Credit Facility. In September 2022, CNX completed a private offering of $500,000 in aggregate principal of 7.375% Senior Notes due January 2031 (the "Senior Notes due January 2031") less an unamortized discount of $6,250 which accrue interest from September 26, 2022 at a rate of 7.375% per year. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2023. The Senior Notes due January 2031 mature on January 15, 2031, rank equally in right of payment to all of CNX's existing and future senior indebtedness and senior to any subordinated indebtedness that the Company may incur and are guaranteed by most of CNX's subsidiaries but does not include CNXM (or its subsidiaries or general partner). During the three months ended September 30, 2022, CNX purchased and retired $350,000 of its outstanding 7.25% Senior Notes due March 2027. As part of the transaction, a loss of $9,953 was included in Loss on Debt Extinguishment in the Consolidated Statements of Income during the three and nine months ended September 30, 2022. During the nine months ended September 30, 2022, CNX purchased $14,346 of its outstanding Convertible Notes. As part of this transaction, a loss of $12,981 was included in Loss on Debt Extinguishment in the Consolidated Statements of Income during the nine months ended September 30, 2022. During the three months ended September 30, 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 notes, along with the related guarantees, were issued pursuant to an indenture dated September 22, 2021. The notes 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 notes 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 three months ended September 30, 2021, CNXM purchased and retired $165,831 aggregate principal amount of its outstanding 6.50% Senior Notes due March 2026. As part of this transaction, a loss of $10,549 was included in Loss on Debt Extinguishment in the Consolidated Statements of Income during the three and nine months ended September 30, 2021. On September 15, 2021 CNXM announced that it had commenced a cash tender offer to purchase any and all of the outstanding 6.50% Senior Notes due March 2026. On October 15, 2021, CNXM redeemed the remaining $234,169 aggregate principal amount of the CNX Midstream Partners LP Senior Notes due March 2026 at a total cost of $246,853, inclusive of redemption premiums of $11,416 and interest of $1,268. During the three months ended September 30, 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 (the "Cardinal States Facility") and terminated the facility. As part of this transaction, a loss of $5,830 was included in Loss on Debt Extinguishment in the Consolidated Statements of Income during the three and nine months ended September 30, 2021. Additionally, during the three months ended September 30, 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 (the "CSG Holdings Facility") and terminated the facility. As part of this transaction, a loss of $2,274 was included in Loss on Debt Extinguishment in the Consolidated Statements of Income during the three and nine months ended September 30, 2021. In April 2020, CNX issued $345,000 in aggregate principal amount of Convertible Notes due May 2026 ("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. 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. Pursuant to the terms of the Convertible Notes indenture, the Sale Price per share of Common Stock condition for conversion of the Convertible Notes was satisfied as of September 30, 2022, and, accordingly, holders of Convertible Notes are permitted to convert any of their Convertible Notes, at their option, at any time during the quarter beginning on October 1, 2022 and ending on December 31, 2022, subject to all terms and conditions set forth in the Convertible Notes indenture. Therefore, as of September 30, 2022, the net carrying value of the Convertible Notes was classified as current in the Consolidated Balance Sheet. On January 1, 2022, the Company adopted Accounting Standards Update (ASU) 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings. This guidance is applicable to the Convertible Senior 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. Upon adoption on January 1, 2022, long-term debt increased by $82,327 representing the net impact of two adjustments: (1) the $107,260 value of the embedded conversion, which is net of allocated offering costs, previously classified in additional paid-in-capital in stockholders’ equity, and (2) a $24,933 increase to retained earnings for the cumulative effect of adoption primarily related to the non-cash interest expense recorded for the amortization of the portion of the Convertible Notes allocated to stockholders’ equity. In addition, there was a decrease of $22,990 to deferred income taxes, a $5,986 decrease to retained earnings, and a $78,284 decrease in stockholders' equity in the Consolidated Balance Sheet. Prospectively, the reported interest expense for the Convertible Notes will no longer include the non-cash interest expense of the equity component as required under prior accounting standards and will be equal to the 2.25% cash coupon rate. Also, as required by the new accounting guidance, the Company will use the if-converted method instead of the treasury stock method for the assumed conversion of the Convertible Notes on a prospective basis when calculating diluted earnings per share. Prior to the adoption of ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, 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 was not remeasured as long as it continued 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 was 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, 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 were being 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. The net carrying amount of the liability and equity components of the Convertible Notes was as follows:
Interest expense related to the Convertible Notes is as follows:
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Commitments and Contingent Liabilities |
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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 ("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. On March 29, 2022, the Court denied the Defendants’ Motions to Dismiss and we are now defending this action on the merits. 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 September 30, 2022, 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 CNX's financial condition.
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 CNX's 2021 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 for additional information). 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 September 30, 2022, the purchase obligations for each of the next five years and beyond are as follows:
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Derivative Instruments |
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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 is 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. 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. In March 2020, CNX entered into an interest rate swap agreement, inclusive of a put option at zero basis points, related to $160,000 of borrowings under the CNX Credit Facility which has the economic effect of modifying the variable-interest obligation into a fixed-interest obligation over a four-year period. In March 2020, CNX entered into a four-year interest rate swap related to an additional $250,000 of borrowings under the CNX Credit Facility, 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 natural gas price fluctuations. Typically, CNX "sells" swaps under which it receives a fixed price from counterparties and pays a floating market price. In order to lock in certain margins while balancing its basis hedges, during the first quarter of 2022, CNX purchased, rather than sold, financial swaps for the period April through October of 2022. 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 these purchased financial swaps, CNX pays a fixed price to, and receives a floating price from, its hedge counterparties. Purchased swaps 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 applicable counterparty master agreements, if CNX's obligations with one 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:
*Net of purchased natural gas basis swaps of 2.3 Bcf. The gross fair value of CNX's derivative instruments was as follows:
The effect of commodity derivative instruments on the Company's Consolidated Statements of Income was as follows:
The effect of interest rate swaps on Interest Expense in the Company's Consolidated Statements of Income was as follows:
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.
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Fair Value of Financial Instruments |
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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 and SOFR-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 and SOFR-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:
The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
Cash and cash equivalents 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. *On January 1, 2022, the Company adopted ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings (See Note 9 – Long-Term Debt for more information).
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Segment Information |
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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 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:
(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:
(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:
(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:
(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)
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Stock Repurchase |
9 Months Ended |
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Sep. 30, 2022 | |
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 plan to $1,900,000. As of September 30, 2022 the amount available under the stock repurchase program is $656,789, and is not subject to an expiration date. The repurchases may be effected 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 nine months ended September 30, 2022, 21,260,865 shares were repurchased and retired at an average price of $16.82 per share for a total cost of $358,024. During the nine months ended September 30, 2021, 9,804,958 shares were repurchased and retired at an average price of $12.38 per share for a total cost of $121,557.
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Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS:See Note 9 – Long-Term Debt for the impact of adoption of ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. |
Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for future periods. The Consolidated Balance Sheet at December 31, 2021 has been derived from the Audited Consolidated Financial Statements at that date but does not include all the notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the Consolidated Financial Statements and related notes for the year ended December 31, 2021 included in CNX Resources Corporation's ("CNX," "CNX Resources," the "Company," "we," "us," or "our") Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on February 10, 2022.
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Reclassification | Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Restricted Cash | Restricted cash at September 30, 2021 consisted of cash held by the Trustee that, pursuant to the indentures governing the CNX Midstream Partners LP Senior Notes due March 2026 at 6.50% ("CNXM Senior Notes due March 2026"), was restricted in its use to fund the redemption of the remaining outstanding CNXM Senior Notes due March 2026 recorded in the Consolidated Balance Sheet as of September 30, 2021 under the terms of the Tender Offer. See Note 9 – Long-Term Debt for more information. |
Receivables | Receivables As of September 30, 2022 and December 31, 2021, Accounts Receivable - Trade were $479,088 and $330,122, respectively, and Other Receivables were $5,436 and $8,924, respectively. 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 will be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
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Recent Accounting Pronouncements | See Note 9 – Long-Term Debt for the impact of adoption of ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. |
Basis of Presentation (Tables) |
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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:
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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:
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Schedule of Allowance for Credit Loss | The following represents activity related to the allowance for credit losses for the nine months ended:
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Earnings Per Share (Tables) |
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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 anti-dilutive:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The table below sets forth the share-based awards that have been exercised or released:
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Schedule of Earnings Per Share, Basic and Diluted | The computations for basic and diluted loss per share are as follows:
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Revenue From Contracts With Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table is a disaggregation of revenue by major source:
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The carrying amount and accumulated amortization of other intangible assets consist of the following:
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Other Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Accrued Liabilities |
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt, Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt |
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Convertible Debt | The net carrying amount of the liability and equity components of the Convertible Notes was as follows:
Interest expense related to the Convertible Notes is as follows:
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Commitments and Contingent Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment | At September 30, 2022, 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 CNX's financial condition.
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Unrecorded Unconditional Purchase Obligations Disclosure | As of September 30, 2022, the purchase obligations for each of the next five years and beyond are as follows:
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Derivative Instruments | The total notional amounts of CNX's derivative instruments were as follows:
*Net of purchased natural gas basis swaps of 2.3 Bcf.
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Schedule of Derivative Assets at Fair Value | The gross fair value of CNX's derivative instruments was as follows:
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Schedule of Derivative Liabilities at Fair Value | The gross fair value of CNX's derivative instruments was as follows:
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Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | The effect of commodity derivative instruments on the Company's Consolidated Statements of Income was as follows:
The effect of interest rate swaps on Interest Expense in the Company's Consolidated Statements of Income was as follows:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
Cash and cash equivalents 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. *On January 1, 2022, the Company adopted ASU 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings (See Note 9 – Long-Term Debt for more information).
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segment Results | Industry segment results for the three months ended September 30, 2022 are:
(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:
(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:
(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:
(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 $17,020.
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Reconciliation of Revenue and Other Operating (Loss) Income from Segments to Consolidated | Revenue and Other Operating Income (Loss)
|
Basis of Presentation - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and Cash Equivalents | $ 1,594 | $ 3,565 | $ 365 | |
Restricted Cash, Current | 0 | 220,386 | ||
Total Cash, Cash Equivalents, and Restricted Cash | $ 1,594 | $ 3,565 | $ 220,751 | $ 21,599 |
Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables related to contracts with customers | $ 479,088 | $ 330,122 | |
Other receivables | $ 5,436 | $ 8,924 | |
6.50% Senior Notes due March 2026 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Stated rate, debt instrument | 6.50% | 6.50% |
Basis of Presentation - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Trade Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, Beginning of Year | $ 84 | $ 84 |
Provision for Expected Credit Losses | 0 | 0 |
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 Year | 3,322 | 3,248 |
Provision for Expected Credit Losses | (306) | 38 |
Write-off of Uncollectible Accounts | (187) | (16) |
Allowance for Credit Losses, End of Period | $ 2,829 | $ 3,270 |
Earnings Per Share - Narrative (Details) - Convertible Senior Notes due 2026 - $ / shares |
Sep. 30, 2022 |
Jan. 01, 2022 |
Apr. 30, 2020 |
---|---|---|---|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Stated rate, debt instrument | 2.25% | 2.25% | |
Convertible Debt | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Stated rate, debt instrument | 2.25% | ||
Conversion price (in usd per share) | $ 12.84 |
Earnings Per Share - Share-based Compensation (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total exercised or released (in shares) | 20,865 | 29,039 | 1,188,984 | 1,713,078 |
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised (in shares) | 19,600 | 26,664 | 156,204 | 683,237 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised (in shares) | 1,265 | 2,375 | 960,427 | 738,188 |
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised (in shares) | 0 | 0 | 72,353 | 291,653 |
Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Numerator: | ||||
Net Loss | $ (427,072) | $ (872,921) | $ (1,316,657) | $ (1,128,956) |
Basic Earnings Available to Shareholders | (427,072) | (872,921) | (1,316,657) | (1,128,956) |
Diluted Earnings Available to Shareholders | $ (427,072) | $ (872,921) | $ (1,316,657) | $ (1,128,956) |
Denominator: | ||||
Weighted-Average Shares of Common Stock Outstanding (in shares) | 187,511,940 | 215,738,737 | 193,750,735 | 218,504,542 |
Weighted-Average Diluted Shares of Common Stock Outstanding (in shares) | 187,511,940 | 215,738,737 | 193,750,735 | 218,504,542 |
Loss per Share | ||||
Basic (in usd per share) | $ (2.28) | $ (4.05) | $ (6.80) | $ (5.17) |
Diluted (in usd per share) | $ (2.28) | $ (4.05) | $ (6.80) | $ (5.17) |
Revenue From Contracts With Customers - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Payment terms for contract with customers | 25 days |
Contract asset | $ 0 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||||
Effective tax rate, percentage | (60.10%) | 29.20% | 10.30% | 26.80% | |
Total amount of uncertain tax positions | $ 82,245,000 | $ 82,245,000 | $ 67,805,000 | ||
Increase resulting in additional tax credits claimed | 14,440,000 | ||||
Unrecognized tax benefits that would impact effective tax rate | 82,245,000 | 82,245,000 | 67,805,000 | ||
Accrued interest liability | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment - Components (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Intangible Drilling Cost | $ 5,466,844 | $ 5,247,800 |
Gas Gathering Equipment | 2,527,166 | 2,483,561 |
Proved Gas Properties | 1,324,110 | 1,312,706 |
Gas Wells and Related Equipment | 1,296,217 | 1,202,731 |
Unproved Gas Properties | 742,419 | 730,400 |
Surface Land and Other Equipment | 193,286 | 194,655 |
Other | 188,266 | 190,249 |
Total Property, Plant and Equipment | 11,738,308 | 11,362,102 |
Less: Accumulated Depreciation, Depletion and Amortization | 4,704,665 | 4,372,619 |
Total Property, Plant and Equipment—Net | $ 7,033,643 | $ 6,989,483 |
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross Amortizable Asset - Customer Relationships | $ 109,752 | $ 109,752 |
Less: Accumulated Amortization - Customer Relationships | 31,124 | 26,209 |
Total Other Intangible Assets, net | $ 78,628 | $ 83,543 |
Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Royalties | $ 192,700 | $ 152,498 |
Deferred Revenue | 22,543 | 18,984 |
Accrued Interest | 20,195 | 36,035 |
Accrued Other Taxes | 14,081 | 12,681 |
Transportation Charges | 14,070 | 15,808 |
Short-Term Incentive Compensation | 9,528 | 19,591 |
Accrued Payroll & Benefits | 6,551 | 5,747 |
Litigation Contingency | 5,091 | 1,200 |
Purchased Gas Payable | 1,001 | 757 |
Other | 13,025 | 15,435 |
Current Portion of Long-Term Liabilities: | ||
Asset Retirement Obligations | 7,529 | 7,154 |
Salary Retirement | 1,898 | 1,842 |
Total Other Accrued Liabilities | $ 308,212 | $ 287,732 |
Long-Term Debt - Schedule of Convertible Debt (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Debt Instrument [Line Items] | |||
Unamortized Issuance Costs | $ (14,748) | $ (17,396) | |
Total Debt | 2,243,562 | 2,214,121 | |
Equity Component, net of Purchase Discounts and Issuance Costs | $ (33) | ||
Convertible Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Total Debt | 323,734 | 253,716 | |
Convertible Debt | Convertible Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Principal | 330,654 | 345,000 | |
Unamortized Discount | 0 | (85,950) | |
Unamortized Issuance Costs | (6,920) | (5,334) | |
Total Debt | 323,734 | 253,716 | |
Fair Value | 459,209 | 453,765 | |
Equity Component, net of Purchase Discounts and Issuance Costs | $ 0 | $ 78,284 |
Long-Term Debt - Schedule of Interest (Details) - Convertible Debt - Convertible Senior Notes due 2026 - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Debt Instrument [Line Items] | ||||
Contractual Interest Expense | $ 1,860 | $ 1,941 | $ 5,717 | $ 5,822 |
Amortization of Debt Discount | 0 | 3,897 | 0 | 11,428 |
Amortization of Issuance Costs | 457 | 260 | 1,411 | 769 |
Total Interest Expense | $ 2,317 | $ 6,098 | $ 7,128 | $ 18,019 |
Commitments and Contingent Liabilities - Narrative (Details) |
May 01, 2020
retiree
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Number of impacted retirees | 2,159 |
Commitments and Contingent Liabilities - Unrecorded Unconditional Purchase Obligation (Details) - Purchase Commitment $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Less than 1 year | $ 256,413 |
1 - 3 years | 459,860 |
3 - 5 years | 378,664 |
More than 5 years | 780,633 |
Total Purchase Obligations | $ 1,875,570 |
Derivative Instruments - Narrative (Details) - USD ($) |
1 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2020 |
Apr. 30, 2020 |
|
Derivative [Line Items] | |||
Credit facility, face amount | $ 1,000 | ||
Interest Rate Swap on Line of Credit | Long | |||
Derivative [Line Items] | |||
Put option, basis points (as a percent) | 0.25% | ||
Interest Rate Swap on Revolving Credit Facility | Long | |||
Derivative [Line Items] | |||
Put option, basis points (as a percent) | 0.00% | ||
Term of derivative contract | 4 years | ||
Derivative notional amount | $ 250,000,000 | $ 250,000,000 | |
Line of Credit | |||
Derivative [Line Items] | |||
Credit facility, face amount | 175,000,000 | ||
Revolving Credit Facility | |||
Derivative [Line Items] | |||
Credit facility, face amount | $ 160,000,000 | ||
Credit facility, modification period | 4 years |
Derivative Instruments - Notional Amounts of Derivative Instruments (Details) $ in Thousands, Mcf in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022
USD ($)
Mcf
|
Dec. 31, 2021
USD ($)
Mcf
|
|
Commodity Member | ||
Derivative [Line Items] | ||
Notional amount (in bcf) | 1,662.8 | 1,686.1 |
Basis Swap | ||
Derivative [Line Items] | ||
Notional amount (in bcf) | 1,052.7 | 1,233.3 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative notional amount | $ | $ 410,000 | $ 410,000 |
Basis Swap Purchased | ||
Derivative [Line Items] | ||
Notional amount (in bcf) | 2.3 |
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative [Line Items] | ||
Total Current Assets | $ 200,598 | $ 95,002 |
Total Other Non-Current Assets | 258,539 | 131,994 |
Total Current Liabilities | 1,407,892 | 521,598 |
Total Non-Current Liabilities | 2,012,326 | 687,354 |
Commodity Swap | ||
Derivative [Line Items] | ||
Total Current Assets | 3,465 | 92 |
Total Other Non-Current Assets | 26,051 | 12,419 |
Total Current Liabilities | 1,356,538 | 505,460 |
Total Non-Current Liabilities | 1,959,805 | 642,442 |
Basis Swap | ||
Derivative [Line Items] | ||
Total Current Assets | 184,556 | 94,682 |
Total Other Non-Current Assets | 225,138 | 119,077 |
Total Current Liabilities | 41,293 | 13,206 |
Total Non-Current Liabilities | 46,916 | 41,332 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Total Current Assets | 12,577 | 228 |
Total Other Non-Current Assets | 7,350 | 498 |
Total Current Liabilities | 10,061 | 2,932 |
Total Non-Current Liabilities | $ 5,605 | $ 3,580 |
Fair Value of Financial Instruments - Fair Value Disclosures (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | $ 1,594 | $ 3,565 | $ 365 |
Long-Term Debt (Excluding Debt Issuance Costs) | 2,243,562 | 2,214,121 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 1,594 | 3,565 | |
Long-Term Debt (Excluding Debt Issuance Costs) | 2,258,310 | 2,231,517 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 1,594 | 3,565 | |
Long-Term Debt (Excluding Debt Issuance Costs) | $ 2,246,994 | $ 2,483,019 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Reconciliation of Segment Information, Revenue and Other Operating (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Revenue, Major Customer [Line Items] | ||||
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 Revenue and Other Operating Income (Loss) | 117,061 | (880,261) | (375,619) | (534,399) |
Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total Segment Revenue from Contracts with External Customers | $ 1,175,467 | $ 621,276 | $ 3,051,538 | $ 1,459,883 |
Stock Repurchase (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Oct. 25, 2021 |
Jan. 26, 2021 |
Dec. 31, 2020 |
|
Equity [Abstract] | |||||||
Share repurchase program, authorized amount | $ 1,900,000,000 | $ 900,000,000 | $ 750,000,000 | ||||
Amount available under the current stock repurchase program | $ 656,789,000 | $ 656,789,000 | |||||
Shares repurchased during period (in shares) | 21,260,865 | 9,804,958 | |||||
Shares repurchased, average price (in usd per share) | $ 16.82 | $ 12.38 | |||||
Total value of shares repurchased | $ 137,056,000 | $ 80,879,000 | $ 358,024,000 | $ 121,557,000 |
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