Note 15 - Segment Information

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 15—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 presently consists of two reportable segments, the PAMC and the CONSOL Marine Terminal. 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 bituminous coal, sold primarily to power generators, industrial end-users and metallurgical end-users. The CONSOL Marine Terminal provides coal export terminal services through the Port of Baltimore. 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 Itmann Mine, the Greenfield Reserves and Resources, closed 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 measures the operating performance of the Company's segments and is used to allocate resources to the Company's segments. 

Reportable segment results for the three months ended September 30, 2022 are:

	PAMC		CONSOL Marine Terminal		Other			Adjustments and Eliminations		Consolidated
Coal Revenue	$	465,693	$	—	$	6,915		$	—	$	472,608
Terminal Revenue		—		14,840		—			—		14,840
Freight Revenue		42,618		—		1			—		42,619
Total Revenue from Contracts with Customers	$	508,311	$	14,840	$	6,916		$	—	$	530,067
Adjusted EBITDA	$	179,516	$	8,328	$	(6,963	)	$	—	$	180,881
Segment Assets	$	1,782,514	$	80,534	$	859,228		$	—	$	2,722,276
Depreciation, Depletion and Amortization	$	49,316	$	1,149	$	4,308		$	—	$	54,773
Capital Expenditures	$	50,112	$	2,248	$	6,035		$	—	$	58,395

Reportable segment results for the three months ended September 30, 2021 are:

	PAMC		CONSOL Marine Terminal		Other			Adjustments and Eliminations		Consolidated
Coal Revenue	$	256,326	$	—	$	2,234		$	—	$	258,560
Terminal Revenue		—		14,108		—			—		14,108
Freight Revenue		19,348		—		—			—		19,348
Total Revenue from Contracts with Customers	$	275,674	$	14,108	$	2,234		$	—	$	292,016
Adjusted EBITDA	$	69,492	$	7,319	$	(10,247	)	$	—	$	66,564
Segment Assets	$	1,763,319	$	105,134	$	721,294		$	—	$	2,589,747
Depreciation, Depletion and Amortization	$	50,837	$	1,202	$	3,938		$	—	$	55,977
Capital Expenditures	$	30,665	$	453	$	14,745		$	—	$	45,863

Reportable segment results for the nine months ended September 30, 2022 are:

	PAMC		CONSOL Marine Terminal		Other			Adjustments and Eliminations		Consolidated
Coal Revenue	$	1,457,595	$	—	$	24,073		$	—	$	1,481,668
Terminal Revenue		—		58,016		—			—		58,016
Freight Revenue		128,394		—		3,025			—		131,419
Total Revenue from Contracts with Customers	$	1,585,989	$	58,016	$	27,098		$	—	$	1,671,103
Adjusted EBITDA	$	541,753	$	37,882	$	(13,185	)	$	—	$	566,450
Segment Assets	$	1,782,514	$	80,534	$	859,228		$	—	$	2,722,276
Depreciation, Depletion and Amortization	$	149,737	$	3,456	$	15,414		$	—	$	168,607
Capital Expenditures	$	84,763	$	2,608	$	47,085		$	—	$	134,456

Reportable segment results for the nine months ended September 30, 2021 are:

	PAMC		CONSOL Marine Terminal		Other			Adjustments and Eliminations		Consolidated
Coal Revenue	$	799,274	$	—	$	4,653		$	—	$	803,927
Terminal Revenue		—		49,700		—			—		49,700
Freight Revenue		72,371		—		—			—		72,371
Total Revenue from Contracts with Customers	$	871,645	$	49,700	$	4,653		$	—	$	925,998
Adjusted EBITDA	$	246,943	$	30,244	$	(19,491	)	$	—	$	257,696
Segment Assets	$	1,763,319	$	105,134	$	721,294		$	—	$	2,589,747
Depreciation, Depletion and Amortization	$	155,787	$	3,616	$	8,670		$	—	$	168,073
Capital Expenditures	$	83,118	$	565	$	19,635		$	—	$	103,318

For the three and nine months ended September 30, 2022 and 2021, the Company's reportable segments had revenues from the following customers, each comprising over 10% of the Company's total sales:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Customer A	$	100,635		*	$	311,707		*
Customer B		*	$	31,520		*	$	114,865
Customer C	$	98,424	$	43,947	$	229,595	$	133,863
Customer D		*		*		*	$	140,314
Customer E		*	$	39,216		*	$	110,253

*Revenues from these customers during the periods presented were less than 10% of the Company's total sales.

Reconciliation of Segment Information to Consolidated Amounts:

	Three Months Ended September 30, 2022
	PAMC			CONSOL Marine Terminal		Other			Total Company
Earnings (Loss) Before Income Tax	$	210,907		$	5,602	$	(64,388	)	$	152,121
Income Tax Expense		—			—		39,414			39,414
Interest Expense, net		(52	)		1,528		10,486			11,962
Interest Income		(437	)		—		(1,104	)		(1,541	)
Depreciation, Depletion and Amortization		49,316			1,149		4,308			54,773
Stock-Based Compensation		1,028			49		147			1,224
Loss on Debt Extinguishment		—			—		674			674
Equity Affiliate Adjustments		—			—		3,500			3,500
Fair Value Adjustment of Commodity Derivative Instruments		(81,246	)		—		—			(81,246	)
Adjusted EBITDA	$	179,516		$	8,328	$	(6,963	)	$	180,881

	Three Months Ended September 30, 2021
	PAMC			CONSOL Marine Terminal		Other			Total Company
(Loss) Earnings Before Income Tax	$	(130,599	)	$	4,506	$	12,304		$	(113,789	)
Income Tax Benefit		—			—		(40,258	)		(40,258	)
Interest Expense, net		305			1,535		14,205			16,045
Interest Income		—			—		(737	)		(737	)
Depreciation, Depletion and Amortization		50,837			1,202		3,938			55,977
Stock-Based Compensation		1,643			76		169			1,888
Loss on Debt Extinguishment		—			—		132			132
Fair Value Adjustment of Commodity Derivative Instruments		147,306			—		—			147,306
Adjusted EBITDA	$	69,492		$	7,319	$	(10,247	)	$	66,564

	Nine Months Ended September 30, 2022
	PAMC			CONSOL Marine Terminal		Other			Total Company
Earnings (Loss) Before Income Tax	$	372,408		$	29,569	$	(128,015	)	$	273,962
Income Tax Expense		—			—		59,115			59,115
Interest Expense, net		205			4,589		34,641			39,435
Interest Income		(1,304	)		—		(3,005	)		(4,309	)
Depreciation, Depletion and Amortization		149,737			3,456		15,414			168,607
Stock-Based Compensation		5,622			268		804			6,694
Loss on Debt Extinguishment		—			—		4,361			4,361
Equity Affiliate Adjustments		—			—		3,500			3,500
Fair Value Adjustment of Commodity Derivative Instruments		15,085			—		—			15,085
Adjusted EBITDA	$	541,753		$	37,882	$	(13,185	)	$	566,450

	Nine Months Ended September 30, 2021
	PAMC			CONSOL Marine Terminal		Other			Total Company
(Loss) Earnings Before Income Tax	$	(81,983	)	$	21,836	$	(23,066	)	$	(83,213	)
Income Tax Benefit		—			—		(43,966	)		(43,966	)
Interest Expense, net		1,425			4,608		41,460			47,493
Interest Income		(36	)		—		(2,370	)		(2,406	)
Depreciation, Depletion and Amortization		155,787			3,616		8,670			168,073
Stock-Based Compensation		4,007			184		416			4,607
Gain on Debt Extinguishment		—			—		(657	)		(657	)
Pension Settlement		—			—		22			22
Fair Value Adjustment of Commodity Derivative Instruments		167,743			—		—			167,743
Adjusted EBITDA	$	246,943		$	30,244	$	(19,491	)	$	257,696