Financial Performance - The company generated $188 million in free cash flow (FCF) in Q2 2025[3, 5] - The company reaffirms 2025 FCF guidance at approximately $575 million[5] - Since Q1 2020, the company has generated approximately $25 billion in free cash flow[6] - The company expects a 2025 free cash flow yield of 12%[3] - The company's Q2 2025 cash operating margin was 65%[3] - The company estimates 2025 cash operating margin to be 63%[3] Share Repurchase and Debt Management - The company repurchased 37 million shares in Q2 at an average price of $3124 per share, totaling $114 million[5] - Since the inception of the buyback program in 2020, the company has repurchased approximately 40% of its outstanding shares[3, 5] - Since Q3 2020, the company has repurchased 890 million shares for $16 billion at an average price of $1801[10] Balance Sheet and Liquidity - The company has significant liquidity under credit facilities, with combined elected commitments of $20 billion[16] - The company issued an additional $200 million in Senior Notes due 2032[16] - The company's adjusted net debt decreased in the second quarter by $69 million[14] Environmental Performance - The company captured approximately 91 million metric tons of waste methane CO₂e, which is nearly 20 times greater than scope 1 emissions[29]

[CNX Resources 2Q 2025 Earnings Results](index=1&type=section&id=CNX%20Resources%202Q%202025%20Earnings%20Results) This report details CNX Resources' Q2 2025 performance, including production volumes, financial statements, hedging, and corporate guidance [Production Volumes and Activity Summary](index=2&type=section&id=Production%20Volumes%20and%20Activity%20Summary) Total production volume for Q2 2025 was 167.6 Bcfe, a 13.4% increase from Q1 2025, driven by higher Shale Sales Volumes Quarterly Production Volumes (Bcfe) | GAS/LIQUIDS | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Shale Sales Volumes (Bcf) | 146.9 | 126.0 | 115.6 | 110.8 | 111.7 | | CBM Sales Volumes (Bcf) | 9.4 | 9.3 | 9.9 | 10.0 | 9.7 | | NGLs Sales Volumes (Bcfe) | 11.1 | 12.2 | 16.2 | 13.2 | 12.4 | | **TOTAL (Bcfe)** | **167.6** | **147.8** | **141.9** | **134.5** | **134.0** | | Average Daily Production (MMcfe) | 1,841.8 | 1,642.3 | 1,543.1 | 1,461.8 | 1,472.5 | - In Q2 2025, drilling and completion activity was focused in the **Central Pennsylvania (CPA) region**, with **3 Utica wells drilled**, 2 fracked, and 3 turned-in-line (TIL)[4](index=4&type=chunk) - Additionally, **5 Marcellus wells** were turned-in-line in the CPA region[4](index=4&type=chunk) [Hedge Volumes and Pricing](index=3&type=section&id=Hedge%20Volumes%20and%20Pricing) CNX maintains a substantial natural gas hedging portfolio through 2028, with 482.3 Bcf hedged for 2025 Total Hedged Volumes and Average Prices | Period | Total Volumes Hedged (Bcf) | Average Price (NYMEX + Basis) ($/Mcf) | | :--- | :--- | :--- | | **2025** | 482.3 | $2.58 | | **2026** | 431.5 | $2.70 | | **2027** | 339.0 | $3.26 | | **2028** | 31.1 | $3.35 | [Gas Hedging Gain/Loss Projections and Actuals](index=4&type=section&id=Gas%20Hedging%20Gain/Loss%20Projections%20and%20Actuals) The company projects a full-year 2025 hedging loss of $244.8 million, contrasting with a Q2 2025 total derivative gain of $421 million Projected Realized Hedging Loss | Period | Total Projected Realized Loss ($ in 000s) | | :--- | :--- | | **Q3 2025** | ($8,762) | | **CY2025** | ($244,763) | | **CY2026** | ($391,875) | Actual Change in Derivatives (Q2 2025 vs Q1 2025) | (Dollars in millions) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Realized (Loss) Gain | ($35) | ($110) | | Unrealized Gain (Loss) | 456 | (418) | | **Gain (Loss) on Commodity Derivative Instruments** | **$421** | **($528)** | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) CNX reported a Q2 2025 net income of $432.5 million, a strong turnaround driven by derivative gains, with stable assets and strong cash flow [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income reached $432.5 million, a significant improvement from the prior quarter's loss due to derivative gains Key Income Statement Data (Dollars in thousands) | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Total Revenue and Other Operating Income | $962,422 | $82,388 | $321,443 | | Gain (Loss) on Commodity Derivative Instruments | $421,121 | ($528,220) | $14,095 | | **Net Income (Loss)** | **$432,521** | **($197,715)** | **($18,261)** | | Diluted Earnings (Loss) per Share | $2.53 | ($1.34) | ($0.12) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets stood at $8.99 billion as of June 30, 2025, with a notable decrease in liabilities boosting stockholders' equity Key Balance Sheet Data (Dollars in thousands) | Metric | 30-Jun-25 | 31-Mar-25 | | :--- | :--- | :--- | | Total Current Assets | $394,225 | $425,430 | | Total Property, Plant and Equipment—Net | $7,858,604 | $7,896,327 | | **TOTAL ASSETS** | **$8,987,867** | **$9,046,709** | | Total Current Liabilities | $1,197,683 | $1,582,893 | | Long-Term Debt | $2,286,855 | $2,353,350 | | **TOTAL LIABILITIES** | **$4,895,154** | **$5,275,935** | | **TOTAL STOCKHOLDERS' EQUITY** | **$4,092,713** | **$3,770,774** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $282.5 million in Q2 2025, funding capital expenditures and $115.7 million in share repurchases Key Cash Flow Data (Dollars in thousands) | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $282,492 | $215,656 | $191,766 | | Net Cash Used in Investing Activities | ($94,922) | ($633,597) | ($144,539) | | Net Cash (Used in) Provided by Financing Activities | ($184,566) | $375,755 | ($45,292) | | Purchases of Common Stock | ($115,714) | ($125,138) | ($44,381) | [Market and Pricing Analysis](index=8&type=section&id=Market%20and%20Pricing%20Analysis) The company's Q2 2025 average realized sales price was $2.68 per Mcfe, yielding a production cash margin of $1.89 per Mcfe [Market Mix and Natural Gas Price Reconciliation](index=8&type=section&id=Market%20Mix%20and%20Natural%20Gas%20Price%20Reconciliation) For 2025, the company projects a realized price of $3.11/Mcf before hedging, with sales diversified across several key markets 2025E Natural Gas Price Reconciliation | Metric | Value | | :--- | :--- | | NYMEX | $3.59 /MMBtu | | Weighted Average Basis (Not considering hedging) | ($0.67) /MMBtu | | Realized Price (per MMBtu) | $2.92 /MMBtu | | **Realized Price Before Financial Hedging (per Mcf)** | **$3.11 /Mcf** | [Price and Cost Data (Per Mcfe)](index=9&type=section&id=Price%20and%20Cost%20Data%20(Per%20Mcfe)) The Q2 2025 average sales price was $2.68/Mcfe, with total production cash costs decreasing to $0.79/Mcfe from the prior quarter Key Price and Cost Data (Per Mcfe) | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Average Sales Price of Natural Gas, NGL and Oil, including Cash Settlement | $2.68 | $2.99 | $2.58 | | Total Natural Gas, NGL and Oil Production Cash Costs, before DD&A | $0.79 | $0.85 | $0.86 | | **Natural Gas, NGL and Oil Production Cash Margin, before DD&A** | **$1.89** | **$2.14** | **$1.72** | [Guidance](index=10&type=section&id=Guidance) CNX updated its 2025 guidance, raising its production forecast and increasing its FCF per share target to ~$4.07 Updated 2025E Guidance | Metric | Previous 2025E | Updated 2025E | | :--- | :--- | :--- | | Production Volumes (Bcfe) | 605 - 620 | 615 - 620 | | Adjusted EBITDAX ($ in millions) | $1,225 - $1,275 | $1,225 - $1,275 | | Total Capital Expenditures ($ in millions) | $450 - $500 | $450 - $500 | | Free Cash Flow (FCF) ($ in millions) | ~$575 | ~$575 | | FCF Per Share | ~$3.97 | ~$4.07 | - The increase in **FCF per share guidance** is attributed to a reduction in shares outstanding, from **144.7 million** as of April 14, 2025, to **141.4 million** as of July 15, 2025[23](index=23&type=chunk) [Non-GAAP Measures](index=11&type=section&id=Non-GAAP%20Measures) This section reconciles non-GAAP measures, reporting Q2 2025 Adjusted EBITDAX of $332 million and Free Cash Flow of $188 million [Definitions](index=11&type=section&id=Definitions) This section defines key non-GAAP financial measures used by management, including Adjusted EBITDAX, Net Debt, and Free Cash Flow - Key non-GAAP measures are defined as follows[26](index=26&type=chunk): - **Adjusted EBITDAX:** EBITDAX adjusted for items like unrealized gains/losses on derivatives and stock-based compensation - **Net Debt:** Total long-term debt minus cash, cash equivalents, and restricted cash - **Free Cash Flow (FCF):** Net cash from operating activities minus capital expenditures plus proceeds from asset sales and minus investments in equity affiliates [Adjusted EBITDAX and Adjusted Net Income](index=13&type=section&id=Adjusted%20EBITDAX%20and%20Adjusted%20Net%20Income) Adjusted EBITDAX for Q2 2025 was $332 million, with adjustments primarily for a $456 million unrealized gain on derivatives Adjusted EBITDAX Reconciliation (Dollars in millions) | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $432 | ($198) | ($18) | | EBITDAX | $783 | ($102) | $143 | | Unrealized (Gain) Loss on Commodity Derivative Instruments | (456) | 418 | 96 | | **Adjusted EBITDAX** | **$332** | **$325** | **$242** | Adjusted Net Income (Dollars in millions) | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | **Adjusted Net Income** | **$100** | **$116** | **$55** | [Operating and Cash Operating Margin](index=14&type=section&id=Operating%20and%20Cash%20Operating%20Margin) The Cash Operating Margin remained stable at 65% in Q2 2025, while the non-GAAP Operating Margin decreased slightly to 34% Non-GAAP Margins | Metric | Q2-2025 | Q1-2025 | Q2-2024 | | :--- | :--- | :--- | :--- | | Operating Margin | 34 % | 37 % | 29 % | | Cash Operating Margin | 65 % | 65 % | 58 % | [Net Debt and Adjusted EBITDAX TTM](index=16&type=section&id=Net%20Debt%20and%20Adjusted%20EBITDAX%20TTM) Net Debt decreased to $2.60 billion as of June 30, 2025, with a trailing-twelve-month Adjusted EBITDAX of $1.19 billion Net Debt (Dollars in millions) | Metric | 30-Jun-25 | 31-Mar-25 | | :--- | :--- | :--- | | Total Long-Term Debt (GAAP) | $2,616 | $2,682 | | Less: Cash, Cash Equivalents, and Restricted Cash | 16 | 13 | | **Net Debt** | **$2,600** | **$2,669** | - **Adjusted EBITDAX** for the trailing-twelve-months (TTM) ending June 30, 2025 was **$1,190 million**[40](index=40&type=chunk) [Free Cash Flow](index=17&type=section&id=Free%20Cash%20Flow) The company generated $188 million in Free Cash Flow during Q2 2025, a significant increase from the $100 million in Q1 2025 2025 Free Cash Flow (Dollars in millions) | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $283 | $216 | | Capital Expenditures | (114) | (131) | | Proceeds from Asset Sales | 21 | 16 | | **Free Cash Flow** | **$188** | **$100** | [Risk Factors](index=19&type=section&id=Risk%20Factors) The report contains forward-looking statements subject to risks including commodity price volatility, economic conditions, and regulations - The report contains forward-looking statements and investors are cautioned not to place undue reliance on them as predictions of future results[49](index=49&type=chunk) - Material risks include[50](index=50&type=chunk): - Pricing volatility for natural gas and NGLs - Negative impacts from local, regional, and national economic conditions - Nonperformance by customers of their contractual obligations - Changes in safety, health, environmental, and other regulations

Core Insights - CNX Resources Corporation released its financial and operational results for the second quarter of 2025, which can be accessed on its website [1][2][3] Financial Performance - The second quarter earnings results include supplemental information regarding quarterly exploration and production (E&P) data such as production volumes and hedging information [2] Company Overview - CNX Resources Corporation is a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company located in Appalachia, with a legacy of 161 years and a substantial asset base [4] - As of December 31, 2024, CNX had 8.54 trillion cubic feet equivalent of proved natural gas reserves [4] - The company is a member of the Standard & Poor's Midcap 400 Index [4] Investor Relations - CNX provides a Q&A conference call for investors, with details available on the Investor Relations page of its website [3][5]

Core Viewpoint - CNX Resources Corporation is set to release its second-quarter 2025 results on July 24, with expectations of continued growth driven by recent acquisitions and operational strategies [1][2]. Group 1: Upcoming Results Expectations - The company is anticipated to benefit from the acquisition of Apex Energy, which is expected to enhance production capacity and free cash flow per share [2][3]. - The Zacks Consensus Estimate for earnings is 38 cents per share, reflecting a year-over-year increase of 5.6% [4]. - Revenue estimates are projected at $456.5 million, indicating a year-over-year increase of 31.9% [4]. Group 2: Production and Pricing Insights - Total production volumes are expected to reach 158.66 billion cubic feet equivalent, up 18.4% year over year [4]. - The average natural gas sales price is estimated to rise by 85.6% year over year to $2.97 per thousand cubic feet equivalent [5]. - However, the realized natural gas price is projected to decrease by 2.4% to $2.45 per thousand cubic feet [5]. Group 3: Financial Strategy and Performance - The company's focus on technology development and strategic use of free cash flow is expected to support long-term value creation [3][8]. - The ability to generate free cash flow may allow CNX to reduce debt and repurchase shares, positively impacting its bottom line [3][8]. - Despite these positive indicators, the Earnings ESP is -13.38%, suggesting a lower likelihood of an earnings beat this quarter [6].

Core Viewpoint - CNX Resources Corporation is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on July 24, with expected earnings of $0.38 per share, reflecting a +5.6% year-over-year change, and revenues projected at $446.7 million, which is a 29.1% increase from the previous year [3][2]. - The consensus EPS estimate has been revised 3.9% lower over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Potential - The Most Accurate Estimate for CNX Resources is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +27.51%, suggesting a strong likelihood of beating the consensus EPS estimate [12]. - The company has a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a favorable outlook for the upcoming earnings report [12]. Historical Performance - In the last reported quarter, CNX Resources exceeded the expected earnings of $0.64 per share by delivering $0.78, resulting in a surprise of +21.88% [13]. - The company has consistently beaten consensus EPS estimates over the last four quarters [14]. Industry Context - Matador Resources, another player in the Oil and Gas - Exploration and Production - United States industry, is expected to post earnings of $1.29 per share for the same quarter, indicating a year-over-year decline of -37.1%, with revenues expected to be $916.99 million, up 8.3% from the previous year [18][19]. - Matador has an Earnings ESP of +12.02% and has also beaten consensus EPS estimates in the last four quarters, similar to CNX Resources [20].

Core Insights - Callinex Mines Inc. has received a grant of up to $150,000 from the Newfoundland and Labrador Junior Exploration Assistance (JEA) Program for its Point Leamington Project, which is 100% owned by the company [2][8] - The company has also secured additional exploration permits for the Point Leamington Project, which includes a significant resource of gold, copper, zinc, and silver [2][4] - The rapid approval of permits, granted just two weeks after submission, highlights Newfoundland's reputation as a mining-friendly jurisdiction [3][8] Company Developments - The JEA grant will support Callinex's 2025 exploration plans, focusing on critical minerals and expanding the resource base of the Point Leamington Deposit [3][6] - The Point Leamington Project has an Indicated Mineral Resource of 5.0 million tonnes grading 2.5 g/t AuEq, totaling 402,000 ounces AuEq, and an Inferred Mineral Resource of 13.7 million tonnes grading 2.24 g/t AuEq, totaling 986,500 ounces AuEq [4][8] - The planned exploration campaign will utilize a two-year exploration permit for ground geophysics and diamond drilling, along with newly approved permits for surface field exploration [5][8] Industry Context - The JEA Program's financial support and efficient permitting process reflect Newfoundland and Labrador's commitment to fostering exploration and development of critical mineral resources [6][8] - Callinex Mines is positioned in one of the richest VMS and Gold Districts in Canada, enhancing its potential for significant mineral discoveries [9]

Financial Results Announcement - CNX Resources Corp. will announce its financial results for Q2 2025 on July 24 at 6:45 a.m. Eastern Time [1] - A brief press release will be issued containing links to prepared remarks, presentation materials, and supplemental information [1] Q&A Conference Call - Following the financial results announcement, a Q&A conference call and webcast will take place [1] - A replay of the Q&A conference call and webcast will be available on CNX's Investor Relations page [2] Company Overview - CNX Resources Corporation is a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company based in Appalachia [3] - The company has a 161-year regional legacy and substantial asset base, with 8.54 trillion cubic feet equivalent of proved natural gas reserves as of December 31, 2024 [3] - CNX is a member of the Standard & Poor's Midcap 400 Index [3]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The service aims to help investors identify stocks with the highest chances of outperforming the market over the next 30 days through the Zacks Style Scores [2][10] Group 2: Zacks Style Scores - Zacks Style Scores rate stocks using an alphabetic system (A, B, C, D, F) based on value, growth, and momentum qualities, with higher scores indicating a better chance of outperforming the market [3][6] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the best chances of high returns [10][11] Group 4: Company Spotlight - CNX Resources Corporation - CNX Resources Corporation is an independent oil and gas exploration and production company, currently holding a Zacks Rank of 3 (Hold) and a VGM Score of A [12] - The company has a Momentum Style Score of B, with shares increasing by 8.7% over the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [13]

Core Viewpoint - Callinex Mines Inc. has received a two-year exploration permit for its Pt. Leamington Project, allowing for immediate exploration activities aimed at expanding the existing mineral resource and testing new targets [2][3][8]. Company Overview - Callinex Mines Inc. is focused on advancing its portfolio of base and precious metals deposits in established Canadian mining jurisdictions, with a significant emphasis on the Pt. Leamington Deposit in Newfoundland [9]. Exploration Permit Details - The exploration permit is valid until June 2027 and enables ground geophysics and diamond drilling at the Pt. Leamington VMS Deposit [3][8]. - Additional exploration permits have been submitted for a planned 2025 surface field exploration campaign, which includes prospecting, geological mapping, and geochemical rock sampling [3][8]. Project Specifications - The Pt. Leamington Project is located approximately 37 km from Grand Falls-Windsor and 20 km from the provincial power grid, featuring a large VMS deposit with a strike length of 500 m and a maximum thickness of 85 m [5]. - The project has an Indicated Mineral Resource of 5.0 million tonnes grading 2.5 g/t AuEq, equating to 402,000 ounces of AuEq, and an Inferred Mineral Resource of 13.7 million tonnes grading 2.24 g/t AuEq, equating to 986,500 ounces of AuEq [5][9]. Exploration Plans - An exploration campaign is anticipated to begin in Q3 2025, focusing on expanding the current resource base and refining targets generated from airborne electromagnetic anomalies [4][6][8]. - The company has identified several untested geophysical anomalies within favorable geological units for further exploration [6]. Government Support - The streamlined permitting process reflects strong government and local support for mining activities in Newfoundland, enhancing the region's reputation as a tier one mining jurisdiction [4][8].

Core Viewpoint - CNX Resources Corporation has promoted Alan Shepard to President while retaining his role as Chief Financial Officer, reflecting the company's confidence in his leadership and contributions to future growth [2]. Group 1: Leadership Changes - Alan Shepard has been promoted to President in addition to his current role as Chief Financial Officer [1][2]. - The Board of Directors unanimously approved this promotion, indicating strong support for Shepard's leadership [2]. Group 2: Company Vision and Strategy - CEO Nick Deiuliis emphasized the opportunity for CNX to create per-share value and positively impact Appalachian communities [2]. - The promotion of Shepard is seen as a recognition of his integral role in developing and executing CNX's sustainable business model and capital allocation approach [2]. Group 3: Company Overview - CNX Resources Corporation is a premier natural gas company focused on ultra-low carbon intensive development, production, and technology in Appalachia [3]. - As of December 31, 2024, CNX had 8.54 trillion cubic feet equivalent of proved natural gas reserves, showcasing its substantial asset base [3].