Non-GAAP Measures

Appendix

(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.

(Dollars in millions) December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020
Net Cash Provided by Operating Activities $814 $1,235 $927 $795
Capital Expenditures (679) (566) (466) (487)
Proceeds from Asset Sales 170 38 45 48
Free Cash Flow $305 $707 $506 $356

Net Debt

Net Debt is defined as total long-term debt minus cash and cash equivalents.

(Dollars in millions) December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2020 December 31, 2020
Total Long-Term Debt (GAAP)1 $ 2,214 $ 2,206 $ 2,244 $ 2,214 $ 2,424 $ 2,600
Less: Cash and Cash Equivalents — 21 2 4 22 156
Net Debt $ 2,214 $ 2,185 $ 2,242 $ 2,210 $ 2,402 $ 2,444

1 Includes current portion

Adjusted Net Debt

Adjusted Net Debt is defined as total long-term debt, plus the historical impact of recent accounting pronouncement, minus cash and cash equivalents.

(Dollars in millions) December 31, 2023 December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2020 September 30, 2020
Total Long-Term Debt (GAAP)1 $ 2,214 $ 2,206 $ 2,244 $ 2,214 $ 2,424 $ 2,600
Plus: Impact of Recent Accounting Pronouncement2 — — — 82 98 101
Less: Cash and Cash Equivalents — 21 2 4 22 156
Adjusted Net Debt $ 2,214 $ 2,185 $ 2,242 $ 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.