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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases LEASES:
CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class.
On August 26, 2022, CNX entered into a new lease for electric powered air drilling equipment that is expected to result in an operating lease ROU asset and operating lease obligation of approximately $7,481 when the lease commences in May 2023. On October 18, 2022, CNX entered into a new lease for an electric-powered drilling system that is expected to result in a finance lease asset, to be included within property, plant and equipment, and as a finance lease obligation of $12,831 in May 2023 which is when the lease is expected to commence.
The components of lease cost were as follows:
For the Years Ended December 31,
202220212020
Operating Lease Cost$56,725 $60,364 $74,703 
Finance Lease Cost:
Amortization of Right-of-Use Assets
665 1,577 4,959 
Interest on Lease Liabilities
78 123 739 
Short-term Lease Cost7,784 8,589 3,252 
Variable Lease Cost*9,271 7,100 9,634 
Total Lease Cost$74,523 $77,753 $93,287 
*Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost.
Amounts recognized in the Consolidated Balance Sheets are as follows:
December 31,
20222021
Operating Leases:
Operating Lease Right-of-Use Assets$174,849 $56,022 
Current Portion of Operating Lease Obligations$47,436 $22,940 
Operating Lease Obligations132,105 33,672 
Total Operating Lease Liabilities
$179,541 $56,612 
Finance Leases:
Property, Plant and Equipment$6,777 $5,613 
Less—Accumulated Depreciation, Depletion and Amortization3,926 3,840 
Property, Plant and Equipment—Net
$2,851 $1,773 
Current Portion of Finance Lease Obligations$881 $555 
Finance Lease Obligations1,970 1,218 
Total Finance Lease Liabilities
$2,851 $1,773 

Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
202220212020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases$55,729 $56,966 $62,610 
Operating Cash Flows for Finance Leases$78 $123 $739 
Financing Cash Flows for Finance Leases$665 $2,785 $7,155 
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases
$36,758 $4,010 $4,027 
Finance Leases
$1,742 $772 $257 
Maturities of lease liabilities are as follows:
OperatingFinance
LeasesLeases
Year Ended December 31,
2023$54,681 $1,057 
202451,477 822 
202547,523 680 
202618,398 611 
20276,048 332 
Thereafter21,532 66 
Total Lease Payments199,659 3,568 
Less: Interest20,118 717 
Present Value of Lease Liabilities$179,541 $2,851 

Lease terms and discount rates are as follows:
For the Years Ended December 31,
202220212020
Weighted Average Remaining Lease Term (years):
Operating Leases
4.416.204.68
Finance Leases
4.013.561.37
Weighted Average Discount Rate:
Operating Leases
4.65 %4.84 %4.40 %
Finance Leases
6.17 %1.72 %6.33 %
Leases LEASES:
CNX's leasing activities primarily consist of operating and finance leases for electric fracturing equipment, natural gas drilling rigs, CNX's corporate headquarters as well as field offices, a natural gas gathering pipeline and commercial vehicles. Some leases include options to renew ranging from a period of 1 to 10 years, which are not recognized as part of the lease right-of-use (ROU) assets or liabilities as they are not reasonably certain to be exercised.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of CNX's leases do not provide an implicit rate, an incremental borrowing rate is used to determine the present value of lease payments. In accordance with ASC 842, it is the Company’s policy to exclude leases with a term of 12 months or less and to not separate lease components from non-lease components for any asset class.
On August 26, 2022, CNX entered into a new lease for electric powered air drilling equipment that is expected to result in an operating lease ROU asset and operating lease obligation of approximately $7,481 when the lease commences in May 2023. On October 18, 2022, CNX entered into a new lease for an electric-powered drilling system that is expected to result in a finance lease asset, to be included within property, plant and equipment, and as a finance lease obligation of $12,831 in May 2023 which is when the lease is expected to commence.
The components of lease cost were as follows:
For the Years Ended December 31,
202220212020
Operating Lease Cost$56,725 $60,364 $74,703 
Finance Lease Cost:
Amortization of Right-of-Use Assets
665 1,577 4,959 
Interest on Lease Liabilities
78 123 739 
Short-term Lease Cost7,784 8,589 3,252 
Variable Lease Cost*9,271 7,100 9,634 
Total Lease Cost$74,523 $77,753 $93,287 
*Amounts recognized in the Consolidated Balance Sheets for natural gas drilling rigs are measured using the rates that would be paid if the rigs were idle, as this represents the minimum payment that could be made under the contract. Variable lease cost represents amounts paid for natural gas drilling rigs above this minimum when the rigs are in use. Amounts recognized in the Consolidated Balance Sheets for electric fracturing equipment are measured using minimum pumping hours under the contract; however, pumping hours may exceed the minimum and vary period to period. Any such amounts paid related to pumping hours in excess of the minimum represent variable lease cost.
Amounts recognized in the Consolidated Balance Sheets are as follows:
December 31,
20222021
Operating Leases:
Operating Lease Right-of-Use Assets$174,849 $56,022 
Current Portion of Operating Lease Obligations$47,436 $22,940 
Operating Lease Obligations132,105 33,672 
Total Operating Lease Liabilities
$179,541 $56,612 
Finance Leases:
Property, Plant and Equipment$6,777 $5,613 
Less—Accumulated Depreciation, Depletion and Amortization3,926 3,840 
Property, Plant and Equipment—Net
$2,851 $1,773 
Current Portion of Finance Lease Obligations$881 $555 
Finance Lease Obligations1,970 1,218 
Total Finance Lease Liabilities
$2,851 $1,773 

Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
202220212020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows for Operating Leases$55,729 $56,966 $62,610 
Operating Cash Flows for Finance Leases$78 $123 $739 
Financing Cash Flows for Finance Leases$665 $2,785 $7,155 
Right-of-Use Assets Obtained in Exchange for Lease Obligations:
Operating Leases
$36,758 $4,010 $4,027 
Finance Leases
$1,742 $772 $257 
Maturities of lease liabilities are as follows:
OperatingFinance
LeasesLeases
Year Ended December 31,
2023$54,681 $1,057 
202451,477 822 
202547,523 680 
202618,398 611 
20276,048 332 
Thereafter21,532 66 
Total Lease Payments199,659 3,568 
Less: Interest20,118 717 
Present Value of Lease Liabilities$179,541 $2,851 

Lease terms and discount rates are as follows:
For the Years Ended December 31,
202220212020
Weighted Average Remaining Lease Term (years):
Operating Leases
4.416.204.68
Finance Leases
4.013.561.37
Weighted Average Discount Rate:
Operating Leases
4.65 %4.84 %4.40 %
Finance Leases
6.17 %1.72 %6.33 %