Note 23 - Segment Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 23—SEGMENT INFORMATION:

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management to make decisions on and assess performance of the Company’s reportable segments. CONSOL Energy consists of two reportable segments. The PAMC includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and a centralized preparation plant. The PAMC segment’s principal activities include the mining, preparation and marketing of thermal coal. The CONSOL Marine Terminal provides coal export terminal services through the Port of Baltimore. Selling, general and administrative costs are allocated to the Company’s segments based on a percentage of resources utilized, a percentage of total revenue and a percentage of total projected capital expenditures. CONSOL Energy’s Other segment includes revenue and expenses from various corporate and diversified business activities that are not allocated to the PAMC or the CONSOL Marine Terminal segments. The diversified business activities include the development of the Itmann Mine, the Greenfield Reserves, closed and idle mine activities, other income, gain on asset sales related to non-core assets, and gain/loss on debt extinguishment. Additionally, interest expense and income taxes, as well as various other non-operated activities, none of which are individually significant to the Company, are also reflected in CONSOL Energy's Other segment and are not allocated to the PAMC and CONSOL Marine Terminal segments.

The Company evaluates the performance of its segments utilizing Adjusted EBITDA and various sales and production metrics. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Company's financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, or cash flows from operations, or as a measure of the Company's profitability, liquidity, or performance under GAAP. The Company uses Adjusted EBITDA to measure the operating performance of its segments and to allocate resources to its segments. Investors should be aware that the Company's presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

The CONSOL Marine Terminal has been disclosed in CONSOL Energy’s Other segment during prior years due to its relative contribution to the Company’s Adjusted EBITDA. The recent COVID-19 pandemic has negatively impacted the Company’s 2020 financial performance and has influenced its outlook with respect to the importance of coal exports. Effective December 31, 2020, the Company disclosed the CONSOL Marine Terminal in a separate reportable segment due to its increased contribution to Adjusted EBITDA as well as the increased reliance on coal exports serviced by the CONSOL Marine Terminal in accordance with how the Company's chief operating decision maker receives and reviews financial information. The Company has revised the consolidated segment information for all periods presented in this Annual Report on Form 10-K to reflect this reclassification.

Industry segment results for the year ended  December 31, 2020 are:

			CONSOL					Adjustments
			Marine					and
	PAMC		Terminal		Other			Eliminations		Consolidated
Coal Revenue	$	771,363	$	—	$	1,299		$	—	$	772,662	(A)
Terminal Revenue		—		66,810		—			—		66,810
Freight Revenue		39,990		—		—			—		39,990
Total Revenue and Freight	$	811,353	$	66,810	$	1,299		$	—	$	879,462
Adjusted EBITDA	$	228,211	$	44,356	$	(11,044	)	$	—	$	261,523
Segment Assets	$	1,864,514	$	108,711	$	550,141		$	—	$	2,523,366
Depreciation, Depletion and Amortization	$	198,272	$	5,095	$	7,393		$	—	$	210,760
Capital Expenditures	$	70,195	$	1,455	$	14,354		$	—	$	86,004

Industry segment results for the year ended  December 31, 2019 are:

			CONSOL					Adjustments
			Marine					and
	PAMC		Terminal		Other			Eliminations		Consolidated
Coal Revenue	$	1,288,529	$	—	$	—		$	—	$	1,288,529	(A)
Terminal Revenue		—		67,363		—			—		67,363
Freight Revenue		19,667		—		—			—		19,667
Total Revenue and Freight	$	1,308,196	$	67,363	$	—		$	—	$	1,375,559
Adjusted EBITDA	$	394,354	$	44,491	$	(32,909	)	$	—	$	405,936
Segment Assets	$	1,981,721	$	87,558	$	624,523		$	—	$	2,693,802
Depreciation, Depletion and Amortization	$	185,616	$	4,078	$	17,403		$	—	$	207,097
Capital Expenditures	$	148,709	$	6,675	$	14,355		$	—	$	169,739

Industry segment results for the year ended  December 31, 2018 are:

			CONSOL					Adjustments
			Marine					and
	PAMC		Terminal		Other			Eliminations		Consolidated
Coal Revenue	$	1,364,292	$	—	$	—		$	—	$	1,364,292	(A)
Terminal Revenue		—		64,926		—			—		64,926
Freight Revenue		43,572		—		—			—		43,572
Total Revenue and Freight	$	1,407,864	$	64,926	$	—		$	—	$	1,472,790
Adjusted EBITDA	$	479,969	$	40,901	$	(36,134	)	$	—	$	484,736
Segment Assets	$	1,894,209	$	84,929	$	781,589		$	—	$	2,760,727
Depreciation, Depletion and Amortization	$	178,969	$	3,782	$	18,513		$	—	$	201,264
Capital Expenditures	$	124,570	$	5,475	$	15,704		$	—	$	145,749

(A) For the years ended  December 31, 2020, 2019 and 2018, the PAMC segment had revenues from the following customers, each comprising over 10% of the Company's total sales:

	For the Years Ended December 31,
	2020		2019		2018
Customer A	$	134,354	$	242,703	$	283,703
Customer B	$	173,461	$	446,403	$	274,755
Customer C	$	116,536	$	215,099	$	214,152

Reconciliation of Segment Information to Consolidated Amounts:

Revenue and Other Income:

	For the Years Ended December 31,
	2020		2019		2018
Total Segment Revenue and Freight from External Customers	$	879,462	$	1,375,559	$	1,472,790
Other Income not Allocated to Segments (Note 4)		126,886		53,349		58,660
Gain on Sale of Assets		15,295		1,995		565
Total Consolidated Revenue and Other Income	$	1,021,643	$	1,430,903	$	1,532,015

Adjusted EBITDA:

	For the Years Ended December 31,
	2020			2019			2018
(Loss) Earnings Before Income Tax	$	(9,242	)	$	98,097		$	187,613
Interest Expense, net		61,186			66,464			83,848
(Gain) Loss on Debt Extinguishment		(21,352	)		24,455			3,922
Interest Income		(1,230	)		(2,937	)		(2,146	)
Depreciation, Depletion and Amortization		210,760			207,097			201,264
CCR Merger Fees		9,822			—			—
Stock/Unit-Based Compensation		11,579			12,760			10,235
Adjusted EBITDA	$	261,523		$	405,936		$	484,736

Total Assets:

	December 31,
	2020		2019
Segment Assets for Total Reportable Business Segments	$	1,973,225	$	2,069,279
Segment Assets for All Other Business Segments		437,307		427,782
Items Excluded from Segment Assets:
Cash and Other Investments		44,013		93,236
Deferred Tax Assets		68,821		103,505
Total Consolidated Assets	$	2,523,366	$	2,693,802

Enterprise-Wide Disclosures:

For the years ended December 31, 2020, 2019 and 2018, CONSOL Energy revenue was predominantly attributable to customers based in the United States of America. No individual country outside of the United States was attributed greater than 10% of total tons sold during the years ended December 31, 2020, 2019 and 2018.

CONSOL Energy's property, plant and equipment is predominantly located in the United States. At December 31, 2020 and 2019, less than 1% of the Company's net property, plant and equipment was located in Canada.