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Note 24 - Segment Information
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 24—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. 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 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 is not a measure of financial performance determined in accordance with GAAP, and items excluded from Adjusted EBITDA may be 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 had been disclosed in CONSOL Energy’s Other segment during the year ended December 31, 2019. The recent COVID-19 pandemic negatively impacted the Company’s 2020 financial performance and 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. 

 

Reportable segment results for the year ended  December 31, 2021 are:

 

      

CONSOL

      

Adjustments

     
      

Marine

      

and

     
  

PAMC

  

Terminal

  

Other

  

Eliminations

  

Consolidated

 

Coal Revenue

 $1,085,080  $—  $6,942  $—  $1,092,022 

Terminal Revenue

  —   65,193   —   —   65,193 

Freight Revenue

  103,819   —   —   —   103,819 

Total Revenue from Contracts with Customers

 $1,188,899  $65,193  $6,942  $—  $1,261,034 

Adjusted EBITDA

 $360,480  $43,491  $(25,725) $—  $378,246 

Segment Assets

 $1,773,609  $108,877  $691,031  $—  $2,573,517 

Depreciation, Depletion and Amortization

 $206,727  $4,834  $13,022  $—  $224,583 

Capital Expenditures

 $100,896  $974  $30,882  $—  $132,752 

 

Reportable 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 

Terminal Revenue

  —   66,810   —   —   66,810 

Freight Revenue

  39,990   —   —   —   39,990 

Total Revenue from Contracts with Customers

 $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 

 

Reportable 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 

Terminal Revenue

  —   67,363   —   —   67,363 

Freight Revenue

  19,667   —   —   —   19,667 

Total Revenue from Contracts with Customers

 $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 

 

For the years ended  December 31, 2021, 2020 and 2019, the Company's reportable segments had revenues from the following customers, each comprising over 10% of the Company's total sales:

 

  

For the Years Ended December 31,

 
  

2021

  

2020

  

2019

 

Customer A

 $186,622  $134,354  $242,702 

Customer B

  *  $223,891  $507,099 

Customer C

 $141,968  $116,536  $215,099 

Customer D

 $170,901   *   * 

 

* 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:

 

Revenue and Other Income:

 

  

For the Years Ended December 31,

 
  

2021

  

2020

  

2019

 

Total Segment Revenue and Freight from External Customers

 $1,261,034  $879,462  $1,375,559 

Unrealized Loss on Commodity Derivative Instruments (Note 21)

  (52,204)  —   — 

Other Income not Allocated to Segments (Note 4)

  38,394   126,886   53,349 

Gain on Sale of Assets

  11,723   15,295   1,995 

Total Consolidated Revenue and Other Income

 $1,258,947  $1,021,643  $1,430,903 

 

Adjusted EBITDA:

 

  

For the Years Ended December 31,

 
  

2021

  

2020

  

2019

 

Earnings (Loss) Before Income Tax

 $35,407  $(9,242) $98,097 

Interest Expense, net

  63,342   61,186   66,464 

(Gain) Loss on Debt Extinguishment

  (657)  (21,352)  24,455 

Interest Income

  (3,287)  (1,230)  (2,937)

Depreciation, Depletion and Amortization

  224,583   210,760   207,097 

Unrealized Loss on Commodity Derivative Instruments

  52,204   —   — 

Pension Settlement

  22   —   — 

CCR Merger Fees

  —   9,822   — 

Stock/Unit-Based Compensation

  6,632   11,579   12,760 

Adjusted EBITDA

 $378,246  $261,523  $405,936 

 

Enterprise-Wide Disclosures:

 

For the years ended December 31, 2021, 2020 and 2019, CONSOL Energy revenue was predominantly attributable to customers based in the United States of America. India was attributed greater than 10% of total revenue during the year ended December 31, 2021. No individual country outside of the United States was attributed greater than 10% of total revenue during the years ended December 31, 2020 and 2019.

 

CONSOL Energy's property, plant and equipment is predominantly located in the United States. At December 31, 2021 and 2020, less than 1% of the Company's net property, plant and equipment was located in Canada.