Non-GAAP Measures
(Definitions, Purpose, and Reconciliations)
CNX’s management uses certain non-GAAP financial measures for planning, forecasting, and evaluating the business and financial performance, and believes that they are useful for investors in analyzing the company. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating CNX because (i) analyses utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.
Free Cash Flow
Free cash flow is defined as operating cash flow minus capex plus proceeds from asset sales and minus investments in equity affiliates.
| (Dollars in millions) | December 31,2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | December 31, 2020 |
|---|---|---|---|---|---|
| Net Cash Provided by Operating Activities | $816 | $814 | $1,235 | $927 | $795 |
| Capital Expenditures | (540) | (679) | (566) | (466) | (487) |
| Proceeds from Asset Sales | 60 | 170 | 38 | 45 | 48 |
| Net investment in equity affiliates | (5) | – | – | – | – |
| Free Cash Flow | $331 | $305 | $707 | $506 | $356 |
Net Debt
Net Debt is defined as total long-term debt minus cash, cash equivalents, and restricted cash.
| (Dollars in millions) | December 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | December 31, 2020 | September 30, 2020 |
|---|---|---|---|---|---|---|
| Total Long-Term Debt (GAAP)1 | $ 2,166 | $ 2,214 | $ 2,206 | $ 2,214 | $ 2,424 | $ 2,600 |
| Less: Cash, Cash Equivalents, and Restricted Cash | $55 | — | 21 | 4 | 22 | 156 |
| Net Debt | $ 2,111 | $ 2,214 | $ 2,185 | $ 2,210 | $ 2,402 | $ 2,444 |
Adjusted Net Debt
Adjusted Net Debt is defined as long-term debt, plus the historical impact of recent accounting pronouncement, minus cash, cash equivalents, and restricted cash.
| (Dollars in millions) | December 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | December 31, 2020 | September 30, 2020 |
|---|---|---|---|---|---|---|
| Total Long-Term Debt (GAAP)1 | $ 2,166 | $ 2,214 | $ 2,206 | $ 2,214 | $ 2,424 | $ 2,600 |
| Plus: Impact of Recent Accounting Pronouncement2 | — | — | — | 82 | 98 | 101 |
| Less: Cash, Cash Equivalents, and Restricted Cash | $55 | — | 21 | 4 | 22 | 156 |
| Adjusted Net Debt | $ 2,111 | $ 2,214 | $ 2,185 | $ 2,292 | $ 2,500 | $ 2,545 |
| 1 | Includes current portion |
| 2 | On January 1, 2022, the Company adopted Accounting Standards Update (ASU) 2020-06 – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity and upon adoption long-term debt increased by $82MM (See Note 10—Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of CNX’s September 30, 2023 Form 10-Q for additional information). As this adjustment was recorded on a prospective basis, Management believes that presenting investors with the net debt on a historical basis would be beneficial. |