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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________________________________________
FORM 10-Q
  __________________________________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-14901
  __________________________________________________
CNX Resources Corporation
(Exact name of registrant as specified in its charter)
Delaware 51-0337383
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
CNX Center
1000 Horizon Vue Drive
Canonsburg, PA 15317-6506
(724) 485-4000
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of exchange on which registered
Common Stock ($.01 par value) CNX New York Stock Exchange
Preferred Share Purchase Rights -- New York Stock Exchange
 __________________________________________________ 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer      Accelerated filer Non-accelerated filer Smaller Reporting Company
Emerging Growth Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassShares outstanding as of October 21, 2022
Common stock, $0.01 par value180,476,996





TABLE OF CONTENTS
  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.





GLOSSARY OF CERTAIN OIL AND GAS TERMS

    The following are certain terms and abbreviations commonly used in the oil and gas industry and included within this Form 10-Q:

Bbl - One stock tank barrel, or 42 U.S. gallons liquid volume, used in reference to oil or other liquid hydrocarbons.
Bcf - One billion cubic feet of natural gas.
Bcfe - One billion cubic feet of natural gas equivalents, with one barrel of oil being equivalent to 6,000 cubic feet of gas.
Btu - One British Thermal Unit.
BBtu - One billion British Thermal Units.
Mbbls - One thousand barrels of oil or other liquid hydrocarbons.
Mcf - One thousand cubic feet of natural gas.
Mcfe - One thousand cubic feet of natural gas equivalents, with one barrel of oil being equivalent to 6,000 cubic feet of gas.
MMBtu - One million British Thermal Units.
MMcfe - One million cubic feet of natural gas equivalents, with one barrel of oil being equivalent to 6,000 cubic feet of gas.
Tcfe - One trillion cubic feet of natural gas equivalents, with one barrel of oil being equivalent to 6,000 cubic feet of gas.
NGL - natural gas liquids - those hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption, condensation or other methods in gas processing plants.
net - "net" natural gas or "net" acres are determined by adding the fractional ownership working interests the Company has in gross wells or acres.
TIL - turn-in-line; a well turned to sales.
NYMEX - New York Mercantile Exchange.
basis - when referring to commodity pricing, the difference between the price for a commodity at a primary trading hub and the corresponding sales price at various regional sales points. The differential commonly is related to factors such as product quality, location, transportation capacity availability and contract pricing.
blending - process of mixing dry and damp gas in order to meet downstream pipeline specifications.
condensate - a mixture of hydrocarbons that exists in the gaseous phase at original reservoir temperature and pressure, but that, when produced, is in the liquid phase at surface pressure and temperature.
conventional play - a term used in the oil and natural gas industry to refer to an area believed to be capable of producing crude oil and natural gas occurring in discrete accumulations in structural and stratigraphic traps utilizing conventional recovery methods.
developed reserves - developed reserves are reserves that can be expected to be recovered: (i) through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
development well - a well drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.
exploratory well - a well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or natural gas in another reservoir. Generally, an exploratory well is any well that is not a development well, an extension well, a service well or a stratigraphic test well.
exploration costs - costs incurred in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects of containing oil and natural gas reserves, including costs of drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property. Principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities and other costs of exploration activities, are: (i) costs of topographical, geographical and geophysical studies and the rights to access the properties in order to conduct those studies, (ii) costs of carrying and retaining undeveloped properties, such as delay rentals and the maintenance of land and lease records, (iii) dry hole contributions (iv) costs of drilling and equipping exploratory wells, and (v) costs of drilling exploratory-type stratigraphic test wells.
gob well - a well drilled or vent hole converted to a well which produces or is capable of producing coalbed methane or other natural gas from a distressed zone created above and below a mined-out coal seam by any prior full seam extraction of the coal.
gross acres - the total acres in which a working interest is owned.
gross wells - the total wells in which a working interest is owned.
lease operating expense - costs of operating wells and equipment on a producing lease, many of which are recurring. Includes items such as water disposals, repairs and maintenance, equipment rental and operating supplies, among others.
net acres - the number of acres an owner has out of a particular number of gross acres.
net wells - the percentage ownership interest in a well that an owner has based on the working interest.
play - a proven geological formation that contains commercial amounts of hydrocarbons.



production costs - costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities, which become part of the cost of oil and natural gas produced.
proved reserves - quantities of oil, natural gas, and natural gas liquids (NGLs) which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.
proved developed reserves (PDPs) - proved reserves which can be expected to be recovered through existing wells with existing equipment and operating methods.
proved undeveloped reserves (PUDs) - proved reserves that can be estimated with reasonable certainty to be recovered from new wells on undrilled proved acreage or from existing wells where a relatively major expenditure is required for completion.
reservoir - a porous and permeable underground formation containing a natural accumulation of producible natural gas and/or oil that is confined by impermeable rock or water barriers and is separate from other reservoirs.
royalty interest - an interest in an oil and natural gas lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof), but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage. Royalties may be either landowners' royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.
throughput - the volume of natural gas transported or passing through a pipeline, plant, terminal, or other facility during a particular period. 
transportation, gathering and compression - cost incurred related to transporting natural gas to the ultimate point of sale. These costs also include costs related to physically preparing natural gas, natural gas liquids and condensate for ultimate sale which include costs related to processing, compressing, dehydrating and fractionating, among others.
service well - a well drilled or completed for the purpose of supporting production in an existing field. Specific purposes of service wells include, among other things, gas injection, water injection and salt-water disposal.
unconventional formations - a term used in the oil and gas industry to refer to a play in which the targeted reservoirs generally fall into one of three categories: (1) tight sands, (2) coal beds or (3) shales. The reservoirs tend to cover large areas and lack the readily apparent traps, seals and discrete hydrocarbon-water boundaries that typically define conventional reservoirs. These reservoirs generally require fracture stimulation treatments or other special recovery processes in order to achieve economic flow rates.
undeveloped reserves - undeveloped reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required. Reserves on undrilled acreage are limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence exists that establishes reasonable certainty of economic producibility at greater distances. Undrilled locations can be classified as having proved undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time. Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.
unproved properties - properties with no proved reserves.
working interest - an interest that gives the owner the right to drill, produce and conduct operating activities on a property and receive a share of any production.
wet gas - natural gas that contains significant heavy hydrocarbons, such as propane, butane and other liquid hydrocarbons.





PART I : FINANCIAL INFORMATION
 
ITEM 1.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)Three Months EndedNine Months Ended
(Unaudited)September 30, September 30,
Revenue and Other Operating Income (Loss):2022202120222021
Natural Gas, NGLs and Oil Revenue$1,127,341 $585,915 $2,875,371 $1,336,588 
Loss on Commodity Derivative Instruments(1,062,353)(1,507,270)(3,441,389)(2,012,714)
Purchased Gas Revenue31,738 16,311 124,132 66,500 
Other Revenue and Operating Income20,335 24,783 66,267 75,227 
Total Revenue and Other Operating Income (Loss)117,061 (880,261)(375,619)(534,399)
Costs and Expenses:
Operating Expense
Lease Operating Expense19,239 11,193 48,920 30,709 
Production, Ad Valorem and Other Fees13,481 9,552 33,366 22,965 
Transportation, Gathering and Compression96,632 90,609 273,275 251,881 
Depreciation, Depletion and Amortization114,167 129,734 348,970 381,284 
Exploration and Production Related Other Costs685 3,073 7,086 8,079 
Purchased Gas Costs
32,309 14,192 123,167 61,153 
Selling, General, and Administrative Costs
27,722 24,851 89,737 76,849 
Other Operating Expense
21,238 21,654 53,947 52,452 
Total Operating Expense325,473 304,858 978,468 885,372 
Other Expense
Other Expense1,922 3,177 6,362 13,410 
Loss (Gain) on Asset Sales and Abandonments, net12,077 (12,446)(7,558)(22,506)
Loss on Debt Extinguishment9,953 18,653 22,934 18,653 
Interest Expense34,351 37,944 92,472 113,892 
Total Other Expense58,303 47,328 114,210 123,449 
Total Costs and Expenses383,776 352,186 1,092,678 1,008,821 
Loss Before Income Tax(266,715)(1,232,447)(1,468,297)(1,543,220)
Income Tax Expense (Benefit)160,357 (359,526)(151,640)(414,264)
Net Loss$(427,072)$(872,921)$(1,316,657)$(1,128,956)
Loss per Share
Basic $(2.28)$(4.05)$(6.80)$(5.17)
Diluted $(2.28)$(4.05)$(6.80)$(5.17)
Dividends Declared$ $ $ $ 









The accompanying notes are an integral part of these financial statements.

5


CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 Three Months EndedNine Months Ended
(Dollars in thousands)September 30, September 30,
(Unaudited)2022202120222021
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)












































The accompanying notes are an integral part of these financial statements.

6


RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(Dollars in thousands)September 30,
2022
December 31,
2021
ASSETS
Current Assets:
Cash and Cash Equivalents$1,594 $3,565 
Accounts and Notes Receivable:
Trade, net479,088 330,122 
Other Receivables, net5,436 8,924 
Supplies Inventories19,650 6,147 
Recoverable Income Taxes 72 
Derivative Instruments200,598 95,002 
Prepaid Expenses17,373 15,975 
Total Current Assets723,739 459,807 
Property, Plant and Equipment:
Property, Plant and Equipment11,738,308 11,362,102 
Less—Accumulated Depreciation, Depletion and Amortization4,704,665 4,372,619 
Total Property, Plant and Equipment—Net7,033,643 6,989,483 
Other Non-Current Assets:
Operating Lease Right-of-Use Assets187,376 56,022 
Derivative Instruments258,539 131,994 
Goodwill323,314 323,314 
Other Intangible Assets78,628 83,543 
Other27,887 56,588 
Total Other Non-Current Assets875,744 651,461 
TOTAL ASSETS$8,633,126 $8,100,751 
























The accompanying notes are an integral part of these financial statements.

7


CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Unaudited)
(Dollars in thousands, except per share data)September 30,
2022
December 31,
2021
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable$169,406 $121,751 
Derivative Instruments1,407,892 521,598 
Current Portion of Finance Lease Obligations686 555 
Current Portion of Long-Term Debt323,122  
Current Portion of Operating Lease Obligations48,710 22,940 
Other Accrued Liabilities308,212 287,732 
Total Current Liabilities2,258,028 954,576 
Non-Current Liabilities:
Long-Term Debt1,920,440 2,214,121 
Finance Lease Obligations1,375 1,218 
Operating Lease Obligations143,291 33,672 
Derivative Instruments2,012,326 687,354 
Deferred Income Taxes146,621 328,601 
Asset Retirement Obligations87,243 88,859 
Other86,814 92,077 
Total Non-Current Liabilities4,398,110 3,445,902 
TOTAL LIABILITIES6,656,138 4,400,478 
Stockholders’ Equity:
Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 183,072,552 Issued and Outstanding at September 30, 2022; 203,531,320 Issued and Outstanding at December 31, 2021
1,835 2,039 
Capital in Excess of Par Value2,602,697 2,834,863 
Preferred Stock, 15,000,000 shares authorized, None issued and outstanding
  
(Accumulated Deficit) Retained Earnings(613,426)877,894 
Accumulated Other Comprehensive Loss(14,118)(14,523)
TOTAL STOCKHOLDERS' EQUITY1,976,988 3,700,273 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$8,633,126 $8,100,751 


















The accompanying notes are an integral part of these financial statements.

8


CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in thousands)
(Unaudited)
Common
Stock
Capital in
Excess
of Par
Value
(Accumulated Deficit) Retained EarningsAccumulated
Other
Comprehensive
Loss
Total
Equity
June 30, 2022$1,918 $2,665,440 $(116,081)$(14,253)$2,537,024 
Net Loss— — (427,072)— (427,072)
Issuance of Common Stock— 135 — — 135 
Purchase and Retirement of Common Stock(83)(66,707)(70,266)— (137,056)
Shares Withheld for Taxes— — (7)— (7)
Amortization of Stock-Based Compensation Awards— 3,829 — — 3,829 
Other Comprehensive Income— — — 135 135 
September 30, 2022$1,835 $2,602,697 $(613,426)$(14,118)$1,976,988 
(Dollars in thousands)
(Unaudited)
June 30, 2021$2,191 $2,950,083 $1,199,570 $(14,913)$4,136,931 
Net Loss— — (872,921)— (872,921)
Issuance of Common Stock— 183 — — 183 
Purchase and Retirement of Common Stock(67)(53,610)(27,202)— (80,879)
Shares Withheld for Taxes— — (9)— (9)
Amortization of Stock-Based Compensation Awards— 3,075 — — 3,075 
Other Comprehensive Income— — — 136 136 
September 30, 2021$2,124 $2,899,731 $299,438 $(14,777)$3,186,516 




























The accompanying notes are an integral part of these financial statements.

9


CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars in thousands)Common StockCapital in
Excess
of Par
Value
Retained EarningsAccumulated Other Comprehensive LossTotal Equity
December 31, 2021$2,039 $2,834,863 $877,894 $(14,523)$3,700,273 
(Unaudited)
Net Loss— — (1,316,657)— (1,316,657)
Issuance of Common Stock2 1,116 — — 1,118 
Purchase and Retirement of Common Stock(212)(169,874)(187,938)— (358,024)
Shares Withheld for Taxes— — (5,672)— (5,672)
Amortization of Stock-Based Compensation Awards6 14,876 — — 14,882 
Other Comprehensive Income— — — 405 405 
Cumulative Effect of Adoption of New Accounting Standard— (78,284)18,947 — (59,337)
September 30, 2022$1,835 $2,602,697 $(613,426)$(14,118)$1,976,988 
(Dollars in thousands)
December 31, 2020$2,208 $2,959,357 $1,476,056 $(15,184)$4,422,437 
(Unaudited)
Net Loss— — (1,128,956)— (1,128,956)
Issuance of Common Stock7 4,977 — — 4,984 
Purchase and Retirement of Common Stock(98)(78,341)(43,118)— (121,557)
Shares Withheld for Taxes— — (4,544)— (4,544)
Amortization of Stock-Based Compensation Awards7 13,771 — — 13,778 
Equity Component of Convertible Senior Notes, net of Issuance Costs— (33)— — (33)
Other Comprehensive Income— — — 407 407 
September 30, 2021$2,124 $2,899,731 $299,438 $(14,777)$3,186,516 






















The accompanying notes are an integral part of these financial statements.

10


CNX RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)Nine Months Ended
Dollars in ThousandsSeptember 30,
Cash Flows from Operating Activities:20222021
Net Loss$(1,316,657)$(1,128,956)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization348,970 381,284 
Amortization of Deferred Financing Costs6,163 18,149 
Stock-Based Compensation14,882 13,778 
Gain on Asset Sales and Abandonments, net(7,558)(22,506)
Loss on Debt Extinguishment22,934 18,653 
Loss on Commodity Derivative Instruments3,441,389 2,012,714 
Gain on Other Derivative Instruments(10,047)(6,075)
Net Cash Paid in Settlement of Commodity Derivative Instruments(1,452,219)(139,045)
Deferred Income Taxes(159,134)(414,659)
Other3,969 (999)
Changes in Operating Assets:
Accounts and Notes Receivable(150,097)(109,249)
Recoverable Income Taxes72 88 
Supplies Inventories(13,503)2,148 
Prepaid Expenses(1,434)(360)
Changes in Other Assets21,642 (1,070)
Changes in Operating Liabilities:
Accounts Payable27,824 6,927 
Accrued Interest(15,840)(14,334)
Other Operating Liabilities36,022 56,961 
Changes in Other Liabilities(4,634)(164)
Net Cash Provided by Operating Activities792,744 673,285 
Cash Flows from Investing Activities:
Capital Expenditures(392,537)(349,150)
Proceeds from Asset Sales30,571 24,234 
Net Cash Used in Investing Activities(361,966)(324,916)
Cash Flows from Financing Activities:
Payments on Long-Term Notes(385,719)(174,614)
Net Payments on CNXM Revolving Credit Facility(36,850)(145,000)
Net (Payments on) Proceeds from CNX Revolving Credit Facility
(147,350)64,550 
Proceeds from Issuance of CNX Senior Notes493,750  
Proceeds from Issuance of CNXM Senior Notes 395,000 
Net Payments on CSG Non-Revolving Credit Facilities (160,544)
Net Payments on Other Debt(475)(2,648)
Proceeds from Issuance of Common Stock1,118 4,984 
Shares Withheld for Taxes(5,672)(4,544)
Purchases of Common Stock(350,019)(124,418)
Debt Issuance and Financing Fees(1,532)(1,983)
Net Cash Used in Financing Activities(432,749)(149,217)
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash(1,971)199,152 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period3,565 21,599 
Cash, Cash Equivalents, and Restricted Cash at End of Period$1,594 $220,751 







The accompanying notes are an integral part of these financial statements.

11


CNX RESOURCES CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)

NOTE 1—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:
September 30,
20222021
Cash and Cash Equivalents$1,594 $365 
Restricted Cash, Current 220,386 
Total Cash, Cash Equivalents, and Restricted Cash$1,594 $220,751 

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.









12


The following represents activity related to the allowance for credit losses for the nine months ended:
September 30,
20222021
Allowance for Credit Losses - Trade, Beginning of Year$84 $84 
Provision for Expected Credit Losses  
Allowance for Credit Losses - Trade, End of Period$84 $84 
Allowance for Credit Losses - Other Receivables, 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 - Other Receivables, End of Period$2,829 $3,270 

NOTE 2—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:
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2022202120222021
Anti-Dilutive Options2,353,875 3,002,504 2,353,875 3,002,504 
Anti-Dilutive Restricted Stock Units2,576,981 2,475,944 2,576,981 2,475,944 
Anti-Dilutive Performance Share Units2,048,957 951,828 2,048,957 951,828 
6,979,813 6,430,276 6,979,813 6,430,276 

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.


13


The table below sets forth the share-based awards that have been exercised or released:
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2022202120222021
Options19,600 26,664 156,204 683,237 
Restricted Stock Units1,265 2,375 960,427 738,188 
Performance Share Units  72,353 291,653 
20,865 29,039 1,188,984 1,713,078 

The computations for basic and diluted loss per share are as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2022202120222021
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)
Effect of Dilutive Securities:
Add Back Interest on Convertible Notes (Net of Tax)$— $— $— $— 
Diluted Earnings Available to Shareholders$(427,072)$(872,921)$(1,316,657)$(1,128,956)
Weighted-Average Shares of Common Stock Outstanding
187,511,940 215,738,737 193,750,735 218,504,542 
Effect of Diluted Shares:*
Options— — — — 
Restricted Stock Units— — — — 
Performance Share Units— — — — 
Convertible Notes— — — — 
Weighted-Average Diluted Shares of Common Stock Outstanding187,511,940 215,738,737 193,750,735 218,504,542 
Loss per Share:
Basic$(2.28)$(4.05)$(6.80)$(5.17)
Diluted$(2.28)$(4.05)$(6.80)$(5.17)
*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.

NOTE 3—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

14


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:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
Revenue from Contracts with Customers:
Natural Gas Revenue$1,063,057 $514,821 $2,672,458 $1,183,178 
NGL Revenue61,281 62,792 189,850 136,176 
Oil/Condensate Revenue3,003 8,302 13,063 17,234 
Total Natural Gas, NGL and Oil Revenue1,127,341 585,915 2,875,371 1,336,588 
Purchased Gas Revenue31,738 16,311 124,132 66,500 
Other Sources of 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 Income20,335 24,783 66,267 75,227 
Total Revenue and Other Operating Income (Loss)$117,061 $(880,261)$(375,619)$(534,399)

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.

15



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.

NOTE 4—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.