Key Takeaways CNX posted Q4 EPS of 68 cents and $419M in revenue, beating estimates as production climbed 7.3% Y/Y.CNX saw average selling prices rise to $2.75/Mcfe while total production costs fell to $1.72/Mcfe.CNX repurchased $100M of shares in Q4 and reduced debt by $122M by exchanging convertible notes.CNX Resources Corporation (CNX) reported fourth-quarter 2025 operating earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 70.0%. The bottom line also increased 19.3% f ...

I analyze oil and gas companies like CNX Resources and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up her ...

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on CNX Resources and similar firms, highlighting the importance of understanding their balance sheets, competitive positions, and development prospects [1] - The industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The investing group, Oil & Gas Value Research, seeks out under-followed oil companies and midstream firms that present compelling investment opportunities [2] Group 2 - The article emphasizes the need for thorough research and analysis of companies' filings and press releases to align with individual investment objectives [4] - It is noted that past performance does not guarantee future results, and no specific investment recommendations are provided [5]

Core Insights - CNX Resources is focusing on maintaining a flat production profile through 2026 while being flexible to adjust capital spending based on market conditions [2][5][3] Capital and Production Strategy - The company's capital program is expected to be front-half weighted, with approximately 60% of the total capital spending allocated to the first half of the year [2][5] - CNX plans to keep production relatively flat throughout the year, with no significant disruptions anticipated despite recent cold weather [2][3] Utica Program - CNX is set to complete about five deep Utica laterals in 2026, with drilling costs around $1,700 per foot [4][7] - The company is currently conducting two spacing tests at 1,300 feet and 1,500 feet to evaluate well performance [6][7] Renewable Natural Gas (RNG) and Pricing - Pennsylvania Tier 1 REC pricing has been stable but has softened slightly recently; current production levels could generate approximately $30 million annually under the proposed guidance [4][10][11] - Management believes that tighter renewable contribution requirements could drive higher pricing in the long term [10] Hedging Strategy - CNX aims to be approximately 80% hedged as it approaches 2027, with a current weighted average NYMEX price of about $4 for its hedge position [5][13] - The company is already over 60% hedged for 2027 and plans to continue building its hedge book [13] Technology Initiatives - CNX has fully adopted the AutoSep technology in its operations, which has led to cost savings and environmental benefits [14] - The company is not currently seeing material financial contributions from this technology but is optimistic about its future potential [14][15]

Core Viewpoint - CNX Resources Corporation is a significant player in the U.S. oil and gas exploration and production sector, focusing on natural gas and maintaining a strong market presence in the Appalachian Basin [1] Financial Performance - CNX reported quarterly earnings of $0.68 per share, surpassing the Zacks Consensus Estimate of $0.40 per share, resulting in a 70% earnings surprise [2][6] - The company's revenue for the quarter ending December 2025 was $419 million, exceeding the Zacks Consensus Estimate by 12.39% and increasing from $386 million in the same quarter the previous year [3][6] Stock Performance - The current stock price of CNX is $37.31, reflecting an increase of approximately 1.57% or $0.58, with a trading range between $36.26 and $38.14 for the day [4] - Over the past year, CNX's stock reached a high of $42.13 and a low of $27, with a market capitalization of approximately $5.38 billion [4][6] Strategic Operations - CNX has made its financial and operational results for the fourth quarter of 2025 available on its website, including detailed earnings results, production volumes, and financial statements, demonstrating transparency [5]

Financial Data and Key Metrics Changes - The company reported a stable production profile throughout the year, with first-half capital expenditures (CapEx) expected to account for about 60% of the total annual CapEx [9] - Current production levels are generating approximately $30 million annually under the proposed guidance for the 45Z program [11] - The average drilling cost for Utica wells is approximately $1,700 per foot, with performance aligned with expectations [27] Business Line Data and Key Metrics Changes - The RNG business line is experiencing stable pricing in the PA Tier 1 REC market, with a long-term bullish outlook contingent on increased renewable energy contributions to the grid [10] - Coal mine methane volumes have seen a modest year-over-year decline, primarily driven by underlying mining activity, with expectations of stability moving forward [30] Market Data and Key Metrics Changes - The company is currently over 60% hedged for 2027, targeting a weighted average NYMEX price of about $4, which is favorable for business performance [33][34] - The company is not seeing significant price activity beyond February contracts, which influences their decision-making regarding increased frac activity [25] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to material changes in gas prices, with a cautious approach to increasing activity based on long-term demand visibility [39] - There is an emphasis on the importance of infrastructure projects and AI demand for future growth, although current production remains at maintenance levels due to regulatory constraints [39][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational preparedness during extreme cold weather events, indicating no expected disruptions to operations or volumes [19] - The company is optimistic about the deep Utica program, with ongoing evaluations of well spacing and performance [17] Other Important Information - The company has internalized and adopted the AutoSep technology, which is expected to provide cost savings and environmental benefits, although it has not yet materially impacted financial results [21] - The company is planning to provide updated acreage counts and inventory runway details by the end of Q1 [46] Q&A Session Summary Question: Inquiry about capital and TIL program translating to production profile - Management indicated that first-half CapEx would be about 60% of the total, allowing flexibility for potential acceleration in the second half [9] Question: Outlook on RNG business line and AEC pricing - Management noted that the PA Tier 1 REC market has stabilized, with long-term pricing expected to improve as renewable energy standards tighten [10] Question: Clarification on Utica program size and timing - Management clarified that the smaller program size is due to timing, with confidence in the deep Utica program and plans for future fracking activity [16][17] Question: Expectations for operational disruptions due to weather - Management confirmed that they do not expect any disruptions, as the team has been well-prepared [19] Question: Update on new tech business and AutoSep - Management reported that AutoSep technology has been adopted internally, with positive early results, but no material financial impact yet [21] Question: Hedging strategy for 2027 - Management stated they are over 60% hedged for 2027, targeting a favorable NYMEX price [33][34] Question: Incremental takeaway and infrastructure projects - Management noted that while some low-hanging fruit has been taken, there are still proposed projects that need approval, and current production remains at maintenance levels [42]

Financial Data and Key Metrics Changes - The company reported a stable production profile throughout the year, with first-half capital expenditures (Capex) expected to account for about 60% of the total annual Capex [9] - Current production levels are generating approximately $30 million annually under the proposed guidance for the 45Z program [11] - The average drilling cost for Utica wells is approximately $1,700 per foot, with performance aligned with expectations [27] Business Line Data and Key Metrics Changes - The RMG business line has seen stable pricing in the PA Tier 1 REC market, with expectations for future price increases tied to stricter renewable energy standards [10] - The company is completing about 5 Utica laterals this year, indicating confidence in the Utica program despite a lower number of turn-in-lines than expected [17] Market Data and Key Metrics Changes - Coal mine methane volumes have experienced a modest year-over-year decline, primarily driven by underlying mining activity [30] - The company is approximately 60% hedged for 2027, targeting a weighted average NYMEX price of about $4, which is favorable for business performance [32][34] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to material changes in gas prices, with plans to potentially add frac activity in the second half of 2026 [25][26] - Long-term strategies involve waiting for infrastructure and demand projects to materialize before increasing production volumes [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational preparedness during extreme cold weather events, indicating no expected disruptions to operations or volumes [19] - The company is cautious about increasing production without clear visibility on future gas prices, emphasizing a long-term approach rather than reacting to short-term market fluctuations [39] Other Important Information - The company is exploring new technologies, such as AutoStep, which has been adopted for flowbacks, but currently does not contribute materially to financial results [21] - The company has a remaining inventory of approximately 40,000-50,000 acres in the core Southwest PA Marcellus area, which is expected to last into the next decade [46] Q&A Session Summary Question: Inquiry about capital and production profile - Management indicated that first-half Capex would be about 60% of the total, allowing flexibility for potential acceleration in the second half [9] Question: Outlook on RMG business line pricing - Management noted that the PA Tier 1 REC market has stabilized, with future price increases dependent on stricter renewable energy standards [10] Question: Clarification on Utica program size - Management clarified that the smaller program size is due to timing, with confidence in the Utica program remaining strong [17] Question: Expectations for operational disruptions due to weather - Management confirmed that they do not expect any disruptions, as preparations have been made [19] Question: Update on new technology business - Management stated that while AutoStep technology is being adopted, it has not yet materially impacted financial results [21] Question: Hedging strategy for 2027 - Management confirmed they are approximately 60% hedged for 2027, targeting a favorable NYMEX price [32][34] Question: Incremental takeaway and infrastructure projects - Management noted that while some projects are proposed, there is currently no material movement off maintenance production levels [42]

Financial Data and Key Metrics Changes - The company has not provided specific financial data or key metrics changes in the call [2][3] Business Line Data and Key Metrics Changes - The capital expenditure (Capex) for the first half of the year is expected to be about 60% of the total annual Capex, with production remaining flat throughout the year [10] - The RMG business line's pricing outlook is stable, with a long-term expectation for prices to increase as renewable energy standards tighten [11] - Current production levels for the 45Z initiative are generating about $30 million annually, with potential adjustments pending final guidance [12] Market Data and Key Metrics Changes - The coal mine methane volumes have seen a modest year-over-year decline, primarily driven by mining activity at specific sites [29] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to changes in gas prices, with plans to potentially add frac activity in the second half of 2026 [24][38] - There is a strategic emphasis on long-term demand growth, particularly in relation to new infrastructure and power projects, rather than short-term production increases [38] Management's Comments on Operating Environment and Future Outlook - Management has expressed confidence in their operational preparedness for extreme weather events, indicating no expected disruptions to operations or volumes [19] - The company is optimistic about the Utica program, clarifying that the current lower number of turn-in-lines is a timing issue rather than a lack of confidence in the project [16][17] Other Important Information - The company is currently over 60% hedged for 2027, targeting an 80% hedge as they approach that year [30][31] Q&A Session Summary Question: Inquiry about capital and production profile - The company expects first-half Capex to be about 60% of the total, with a flat production profile throughout the year, allowing flexibility for potential acceleration in the second half [10] Question: Outlook on RMG business line pricing - The RMG pricing has stabilized, with long-term expectations for increases tied to renewable energy standards [11] Question: Clarification on Utica program size - The smaller program size is attributed to timing, with confidence in the Utica program remaining strong [16][17] Question: Impact of weather on operations - Management does not anticipate any disruptions from weather events, as preparations have been made [19] Question: Update on new technology business - The AutoStep technology has been adopted internally, with expectations for increased adoption in 2026, though it has not yet materially impacted financials [21] Question: Hedging strategy for 2027 - The company aims to be approximately 80% hedged for 2027, with a current average NYMEX price of about $4 [30][31]

Q4 2025 Update January 29, 2026 Q4 2025 Highlights "The fourth quarter represented our 24th consecutive quarter of free cash flow generation, highlighting our Sustainable Business Model and consistent execution that are the cornerstones of growing our long-term per share value," commented Alan Shepard, President & CEO. "We continue to believe that our share repurchase program represents a compelling capital allocation opportunity, and as such, we are announcing an additional $2 billion share repurchase auth ...

CNX Resources Corporation. (CNX) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +70.00%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.49, delivering a surprise of +32.43%.Over the last four quarters, t ...