QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: In addition to the risks inherent in operations, CNX is exposed to financial, market, political and economic risks.
+Added: In addition to the risks inherent in operations, CNX is exposed to certain financial, market, political and economic risks.
The following discussion provides additional detail regarding CNX's exposure to the risks of changing commodity prices, interest rates and foreign exchange rates.
CNX is exposed to market price risk in the normal course of selling natural gas and liquids.
−Removed: CNX uses fixed-price contracts, options and derivative commodity instruments (over-the-counter swaps) to minimize exposure to market price volatility in the sale of natural gas.
+Added: CNX uses fixed-price contracts, options and derivative commodity instruments (over-the-counter swaps) to minimize exposure to market price volatility in the sale of natural gas and NGLs.
Under our risk management policy, it is not our intent to engage in derivative activities for speculative purposes.
4 unchanged sentences
The Company's market risk strategy incorporates fundamental risk management tools to assess market price risk and establish a framework in which management can maintain a portfolio of transactions within predefined risk parameters.
−Removed: CNX believes that the use of derivative instruments, along with our risk assessment procedures and internal controls, mitigates our exposure to material risks.
+Added: CNX believes that the use of derivative instruments, along with our risk assessment procedures and internal controls, mitigates our exposure to material pricing risks.
The use of derivative instruments without other risk assessment procedures could materially affect the Company's results of operations depending on market prices;
1 unchanged sentence
For a summary of accounting policies related to derivative instruments, see Note 1 – Significant Accounting Policies in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K.
−Removed: CNX’s open gas derivative instruments can cause earnings volatility relative to changes in market prices until the derivative contracts are either settled or are monetized prior to settlement.
−Removed: At December 31, 2022 and December 31, 2021 our open derivative instruments were in a net liability position with fair values of $1,905 million and $976 million, respectively.
+Added: CNX’s open derivative instruments can cause earnings volatility relative to changes in market prices until the derivative contracts are either settled or are monetized prior to settlement.
+Added: At December 31, 2023 and 2022 our open commodity derivative instruments were in a net liability position with fair values of $56 million and $1,905 million, respectively.
A sensitivity analysis has been performed to determine the incremental effect on future earnings related to open derivative instruments at December 31, 2023 and 2022.
6 unchanged sentences
At December 31, 2023 and 2022, CNX had $157 million and $154 million, respectively, of debt outstanding under variable-rate instruments.
−Removed: CNX’s primary exposure to market risk for changes in interest rates relates to CNX’s revolving credit facility, under which there were no borrowings at December 31, 2022 and $192 million at December 31, 2021, and CNXM's revolving credit facility, under which there were $154 million of borrowings at December 31, 2022 and $185 million at December 31, 2021.
−Removed: A hypothetical 100 basis-point increase in the average rate for CNX's variable-rate instruments would decrease pre-tax future earnings as of December 31, 2022 and 2021 by $2 million and $4 million, respectively, on an annualized basis.
+Added: CNX’s primary exposure to market risk for changes in interest rates relates to CNX’s Credit Facility, under which there was $52 million of borrowings at December 31, 2023 and no borrowings at December 31, 2022, and CNXM's Credit Facility, under which there was $105 million of borrowings at December 31, 2023 and $154 million at December 31, 2022.
+Added: A hypothetical 100 basis-point increase in the average rate for CNX's variable-rate instruments would decrease pre-tax future earnings as of December 31, 2023 and 2022 by $2 million on an annualized basis.
All of CNX's transactions are denominated in U.S.
16 unchanged sentences
Weighted Average Hedge Price per Mcf $ 3.31 $ 3.33 $ 3.33 $ 3.42 $ 3.35
−Removed: 2027 Fixed Price Volumes
−Removed: Hedged Bcf 34.6 35.0 35.4 35.4 140.4
−Removed: Weighted Average Hedge Price per Mcf $ 3.29 $ 3.32 $ 3.32 $ 3.46 $ 3.35
*Quarterly volumes do not add to annual volumes inasmuch as a discrete condition in individual quarters, where basis hedge volumes exceed NYMEX hedge volumes, does not exist for the year taken as a whole.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.