Core Insights - CNX Resources Corporation reported third-quarter 2025 operating earnings of 49 cents per share, exceeding the Zacks Consensus Estimate of 37 cents by 32.4% and increasing 19.5% from 41 cents in the same quarter last year [1][8] - The company achieved revenues of $423 million, surpassing the Zacks Consensus Estimate of $366 million by 15.6% and rising 19.5% from $354 million in the prior-year quarter [2][8] Financial Performance - The average selling price for the quarter was $2.62 per thousand cubic feet equivalent (Mcfe), a slight decrease of 0.4% from $2.63 in the previous year [3] - Total production cost was $1.71 per Mcfe, down 2.8% year over year [3] - Total production volumes reached 161.3 billion cubic feet equivalent (Bcfe), marking a 19.9% increase year over year [3] - Interest expenses amounted to $43 million, reflecting a 13.3% increase from the previous year [3] Share Repurchase and Capital Management - During the third quarter, CNX repurchased 6.1 million shares at an average price of $30.12 per share, totaling $182 million, and has repurchased approximately 43% of its outstanding shares over the past 20 quarters [4][8] - As of September 30, 2025, cash and cash equivalents were $4.7 million, down from $17.2 million as of December 31, 2024 [5] - Long-term debt increased to $2.25 billion from $1.84 billion as of December 31, 2024 [5] - Cash from operating activities for the first nine months of 2025 was $731.9 million, compared to $547 million in the same period last year [5] - Free cash flow for the same period amounted to $226 million [5] Capital Expenditure and Guidance - Capital expenditure for the first nine months totaled $320.6 million, down from $434.8 million in the prior-year period [6] - CNX now expects total capital expenditure for 2025 to be between $475 million and $500 million, slightly adjusted from the previous range of $450-$500 million [7] - The company raised its 2025 production volume guidance to a range of 620-625 Bcfe, up from the previous guidance of 615-620 Bcfe [7] - Total free cash flow is now expected to be $640 million [7] - Adjusted EBITDAX for 2025 is projected to be in the range of $1.2-$1.225 billion, revised down from $1.225-$1.275 billion [7]

Core Insights - CNX Resources Corporation reported a revenue of $423 million for the quarter ended September 2025, marking a 19.5% increase year-over-year and a surprise of +15.6% over the Zacks Consensus Estimate of $365.91 million [1] - The earnings per share (EPS) for the quarter was $0.49, compared to $0.41 in the same quarter last year, resulting in an EPS surprise of +32.43% against the consensus estimate of $0.37 [1] Performance Metrics - Average Daily Production was 1,753.30 Mcfe/D, exceeding the four-analyst average estimate of 1,704.24 Mcfe/D [4] - Total Production Volumes reached 161.30 Bcfe, surpassing the four-analyst average estimate of 156.79 Bcfe [4] - NGL Sales Volume was 2,007.00 MBBL, compared to the four-analyst average estimate of 1,748.51 MBBL [4] - Oil/Condensate Sales Volume was 53.00 MBBL, exceeding the average estimate of 32.33 MBBL from four analysts [4] - NGLs Gross Price was $18.24, slightly above the four-analyst average estimate of $18.16 [4] - Realized Natural Gas Price per Mcf was $2.57, compared to the average estimate of $2.38 based on three analysts [4] - Natural Gas Sales Volume was 148.94 MMcf, slightly higher than the average estimate of 146.10 MMcf based on three analysts [4] - Oil/Condensate Gross Price was $56.94, compared to the average estimate of $51.16 from three analysts [4] - Average Sales Price for Natural Gas was $2.43, below the average estimate of $2.71 based on three analysts [4] Stock Performance - CNX Resources shares have returned -5.4% over the past month, while the Zacks S&P 500 composite has increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - CNX reported net income of $202 million, or earnings per diluted share of $1.21, for Q3 2025, compared to net income of $66 million, or earnings per diluted share of $0.37, for Q3 2024[175]. - CNX reported net income of $437 million, or earnings per diluted share of $2.57, for the nine months ended September 30, 2025, compared to $54 million, or $0.32 per diluted share, in 2024[220]. - Earnings before income tax surged to $266 million for the three months ended September 30, 2025, up 220.5% from $83 million in 2024[218]. - The company reported total earnings before income tax of $579 million for the nine months ended September 30, 2025, a substantial increase of 682.4% compared to $74 million in 2024[266]. - The effective income tax rate for the nine months ended September 30, 2025, was 24.5%, down from 26.5% in 2024[266]. Revenue and Sales Volumes - Total revenue for Q3 2025 was $584 million, up from $424 million in Q3 2024, reflecting a significant increase in sales of natural gas, NGL, and oil[178]. - Total revenue and other operating income increased to $1,629 million in 2025 from $1,130 million in 2024[223]. - Sales of natural gas, NGL, and oil, including cash settlements, amounted to $423 million in Q3 2025, compared to $354 million in Q3 2024, indicating a year-over-year growth of approximately 19.5%[178]. - Total sales volumes increased by 67.9 Bcfe to 476.7 Bcfe in 2025, primarily due to the Apex Transaction and new wells being turned-in-line[225]. - Total sales volumes increased by 26.8 Bcfe to 161.3 Bcfe for the three months ended September 30, 2025, compared to 134.5 Bcfe in 2024, primarily due to the Apex Transaction and new wells coming online[179][187]. Production Costs - Natural Gas, NGL and Oil Production Costs for Q3 2025 were $276 million, compared to $237 million in Q3 2024[178]. - Natural gas, NGL, and oil production costs, a non-GAAP measure, amounted to $803 million in 2025, up from $705 million in 2024[224]. - Total operating costs and expenses for the Shale segment were $682 million, an increase from $587 million in the previous year, primarily due to higher lease operating expenses and depreciation costs[234]. - Total operating costs and expenses for the Shale segment were $235 million for the three months ended September 30, 2025, compared to $198 million in 2024, with lease operating expenses rising to $21 million from $12 million[190]. Segment Performance - The Shale segment reported earnings before income tax of $171 million for the three months ended September 30, 2025, compared to $145 million for the same period in 2024[185]. - For the nine months ended September 30, 2025, the Shale segment reported earnings before income tax of $581 million, up from $449 million in the same period of 2024, reflecting an increase of $132 million or 29.4%[229]. - The CBM segment reported a loss before income tax of $5 million for Q3 2025, an improvement from a loss of $9 million in 2024[195]. - The CBM segment reported a loss before income tax of $14 million for the nine months ended September 30, 2025, an improvement from a loss of $18 million in 2024[240]. Acquisitions and Transactions - The company completed the acquisition of Apex Energy II, LLC, expanding its shale undeveloped leasehold in central Pennsylvania[171]. - CNX entered into an agreement to acquire Utica Shale oil and gas rights across approximately 23,000 acres for approximately $50 million, to be paid over three years starting January 2026[172]. - The company completed the Apex Transaction for total cash consideration of approximately $518 million during the nine months ended September 30, 2025[274]. - The net gain on asset sales and abandonments was $68 million for the three months ended September 30, 2025, compared to a net gain of $11 million in the same period of 2024[215]. Hedging and Commodity Instruments - CNX's total hedged natural gas production for Q4 2025 is 121.9 Bcf, with annual gas hedge positions of 484.0 Bcf for 2025 and 441.3 Bcf for 2026[170]. - An unrealized gain on commodity derivative instruments of $110 million was included in Q3 2025 earnings, contrasting with an unrealized loss of $6 million in Q3 2024[176]. - The company recorded an unrealized gain on commodity derivative instruments of $148 million for the nine months ended September 30, 2025, contrasting with a loss of $149 million in 2024[221]. Expenses and Costs - Total SG&A expenses decreased to $30 million in Q3 2025 from $33 million in Q3 2024, reflecting lower professional services and various one-time items[211]. - Total interest expense increased by $5 million to $43 million for the three months ended September 30, 2025, representing a 13.2% increase compared to $38 million in 2024[217]. - Total interest expense increased by $15 million to $129 million for the nine months ended September 30, 2025, primarily due to higher borrowings at increased interest rates[265]. Cash Flow and Liquidity - Cash provided by operating activities increased by $185 million to $732 million for the nine months ended September 30, 2025, compared to $547 million for the same period in 2024[273]. - As of September 30, 2025, CNX had cash, cash equivalents, and restricted cash of $17 million, down from $55 million as of December 31, 2024[272]. - Total debt as of September 30, 2025, was $2,585 million, including $329 million classified as current portion of long-term debt[277]. Market Conditions and Risks - The inflationary environment continues to present risks, particularly related to steel, diesel fuel, and labor costs, which could impact financial performance[169]. - The One, Big, Beautiful Bill Act allows for 100% bonus depreciation on property acquired and placed in service on or after January 19, 2025, impacting CNX's taxable temporary differences[173].

Financial Data and Key Metrics Changes - The company experienced a significant free cash flow generation during Q3, which was a primary driver for the uptick in buybacks, marking the highest buyback since Q4 2022 [5] - Free cash flow guidance remains roughly flat despite adjusted EBITDAX moving down and CapEx increasing, with a target of $575 million for free cash flow [20][21] Business Line Data and Key Metrics Changes - The company successfully acquired remaining unleased Utica rights underlying the Apex footprint, enhancing its operational leverage [7] - Drilling costs for Utica have decreased from approximately $2,200 per foot to $1,750 per foot, representing a nearly 20% reduction [33][55] Market Data and Key Metrics Changes - The company remains bullish on long-term demand for natural gas in the Appalachia region, particularly with the potential for AI-generated demand [38] - There is an increasing need for additional pipeline infrastructure to transport low-cost gas from the basin to demand centers [39] Company Strategy and Development Direction - The company plans to maintain a "maintenance mode" for production in 2026, focusing on generating free cash flow and responding flexibly to market conditions [11] - The strategy includes a focus on operational efficiency and cost reduction in drilling, with plans to develop the Utica field without significant exploration [25][30] Management's Comments on Operating Environment and Future Outlook - Management expects to see a concentration of completion activities in Q4 and Q1, with flexibility to adapt to the pricing environment in 2026 [43] - The company is open to M&A opportunities but will prioritize internal capital allocation unless a compelling external opportunity arises [12] Other Important Information - The company is awaiting the notice of final rulemaking on 45Z, with expectations for confirmation of a $30 million annual run rate once finalized [10] - Infrastructure spending will be more efficient moving forward, with a focus on adding a few pads per year rather than large-scale midstream build-outs [50][51] Q&A Session Summary Question: What drove the uptick in buybacks during Q3? - The primary driver was significant free cash flow generation, with the business valuation viewed as attractive relative to its intrinsic value [5] Question: Can you provide an update on the Utica acquisition? - The company acquired remaining unleased Utica rights and plans to leverage existing infrastructure for development [7] Question: What is the outlook for free cash flow guidance? - Free cash flow guidance remains roughly flat, with adjustments based on working capital fluctuations [20][21] Question: What are the plans for drilling and operational efficiency? - The focus will be on reducing drilling costs and increasing efficiency, with a target of $1,750 per foot for Utica [33][55] Question: How does the company view the current market for M&A? - The company is open to opportunities but will prioritize internal capital allocation unless a more attractive external opportunity arises [12] Question: What is the company's strategy for infrastructure development? - Infrastructure spending will be more efficient, focusing on a few pads per year rather than large-scale projects [50][51]

Financial Performance - CNX generated $226 million in Q3 2025 free cash flow[3], marking the 23rd consecutive quarter of positive free cash flow generation[3, 5] - The company anticipates approximately $640 million in free cash flow for 2025[5], driven by additional asset sales[5] - CNX has generated approximately $27 billion in free cash flow since Q1 2020[6] - The company's Q3 2025 cash operating margin was 62%[3], with an expected 2025 cash operating margin of 63%[3] - Q3 2025 fully burdened cash costs, before DD&A, were $109 per Mcfe[3], with an expected ~$112 per Mcfe for 2025[3] Capital Allocation - CNX repurchased 61 million shares in Q3 2025 at an average price of $3012 per share, totaling $182 million[5] - Since the inception of the buyback program in 2020, CNX has repurchased approximately 43% of its outstanding shares[3, 5, 12] - CNX has repurchased 957 million shares for $18 billion since Q3 2020 at an average price of $1886[11] Balance Sheet and Guidance - CNX's adjusted net debt increased in the first quarter of 2025 due to the Apex Energy acquisition[13] - The company has significant liquidity under credit facilities, with combined elected commitments of $20 billion[18] - CNX updated its 2025 free cash flow guidance to approximately $640 million, which includes approximately $115 million in expected asset sales[5, 20, 21] - The updated guidance for 2025 FCF per share is ~$475, based on shares outstanding of 134,832,658 as of 10/20/2025[20, 22] Environmental Performance - CNX captured approximately 91 million metric tons of waste methane CO₂e, which is nearly 20 times greater than scope 1 emissions[28]

分组1 - CNX Resources Corporation reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.41 per share a year ago, resulting in an earnings surprise of +32.43% [1] - The company achieved revenues of $423 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 15.60%, compared to $354 million in the same quarter last year [2] - Over the last four quarters, CNX Resources has consistently surpassed consensus EPS estimates, achieving this four times [2] 分组2 - The stock has underperformed, losing about 13.4% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $374.1 million, and for the current fiscal year, it is $2.17 on revenues of $1.78 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is in the bottom 17% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Production and Sales Volumes - In Q3 2025, CNX Resources reported total production volumes of 161.3 Bcfe, a decrease of 3.8% from 167.6 Bcfe in Q2 2025[3] - Shale sales volumes were 139.2 Bcf in Q3 2025, down from 146.9 Bcf in Q2 2025, reflecting a decline of 5.2%[3] - Average daily production for Q3 2025 was 1,753.3 MMcfe, compared to 1,841.8 MMcfe in Q2 2025, representing a decrease of 4.8%[3] - Production volumes guidance for 2025 has been updated to a range of 620 to 625 Bcfe, with approximately 8% expected to be liquids[21] Financial Performance - Total revenue for Q3-2025 was $583,840,000, a significant decrease of 39.4% compared to Q2-2025's $962,422,000[11] - Natural Gas, NGL, and Oil revenue decreased to $400,990,000 in Q3-2025 from $485,029,000 in Q2-2025, reflecting a decline of 17.4%[11] - Net income for Q3-2025 was $202,103,000, down 53.3% from $432,521,000 in Q2-2025[11] - Basic earnings per share for Q3-2025 was $1.45, compared to $3.02 in Q2-2025, a decrease of 52.0%[11] - Total Revenue and Other Operating Income for Q3-2025 was $584 million, a decrease from $962 million in Q2-2025[29] - Net Income for Q3-2025 was $202 million, down from $432 million in Q2-2025, while Q1-2025 reported a loss of $198 million[31] - Adjusted EBITDAX for Q3-2025 was $298 million, compared to $332 million in Q2-2025[31] - Adjusted Net Income for Q3-2025 was $82 million, compared to $100 million in Q2-2025[32] Cash Flow and Expenses - The company reported a net cash provided by operating activities of $233.8 million in Q3 2025, a decrease from $282.5 million in Q2 2025[13] - Free cash flow (FCF) guidance for 2025 has been increased to approximately $640 million, up from $575 million[21] - Free Cash Flow for Q3 2025 is $226 million, an increase from $188 million in Q2 2025[45] - Capital Expenditures for Q3 2025 are $76 million, down from $114 million in Q2 2025[45] - The company reported a total operating expense of $340,892,000 in Q3-2025, a slight decrease from $346,726,000 in Q2-2025[11] Hedging and Commodity Derivatives - CNX has hedged 121.8 Bcf for Q4 2025 at an average price of $2.55 per Mcf, with total hedged volumes for 2025 reaching 483.5 Bcf at an average price of $2.58 per Mcf[5] - The unrealized gain for Q3 2025 was $110 million, a significant improvement from an unrealized loss of $418 million in Q1 2025[9] - The company reported a significant unrealized loss on commodity derivative instruments of $110 million in Q3-2025, compared to a loss of $456 million in Q2-2025[34] - The average gain on natural gas commodity derivative instruments for cash settlement in Q3 2025 was $0.15, compared to a loss of $0.23 in Q2 2025[17] - CNX's average prices for NYMEX hedges in 2025 are projected at $3.31 per Mcf, with a forecasted gain/loss of ($79,286,000) for the year[7] Assets and Liabilities - Total current assets decreased to $360,895,000 as of September 30, 2025, from $394,225,000 at the end of June 2025, a decline of 8.4%[12] - Total assets as of September 30, 2025, were $8,904,118,000, down from $8,987,867,000 at the end of June 2025, a decrease of 0.9%[12] - Total liabilities decreased to $4,788,545,000 as of September 30, 2025, from $4,895,154,000 at the end of June 2025, a decline of 2.2%[12] - Long-term debt as of September 30, 2025, was $2,247,199,000, a decrease from $2,286,855,000 at the end of June 2025, down 1.7%[12] - Total Long-Term Debt as of September 30, 2025, is $2,577 million, a decrease from $2,682 million on March 31, 2025[41] - Net Debt as of September 30, 2025, stands at $2,560 million, down from $2,669 million on March 31, 2025[41] Market Strategy and Outlook - CNX's market strategy includes continued focus on natural gas production and hedging to mitigate price volatility[2] - The company expects to have 84% of its natural gas production hedged for 2025, slightly down from 85% previously[21] - Total capital expenditures for 2025 are now projected to be between $475 million and $500 million, reflecting an increase in drilling and completions spending[21]

Core Insights - Longleaf Partners Fund reported a return of -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and Russell 1000 Value's 5.33% returns, expressing dissatisfaction with the portfolio's flat performance [1] - The fund focuses on investments in real assets and brands that generate growing free cash flow (FCF) per share, anticipating an increase in its ~10x FCF multiple to the mid-teens as management implements margin improvement strategies and share repurchases [1] Company Specifics - CNX Resources Corporation (NYSE:CNX) is highlighted as a key investment, with a one-month return of 1.58% and a 52-week loss of 10.47%, closing at $32.74 per share with a market capitalization of $4.63 billion on October 23, 2025 [2] - The fund expects CNX Resources to trade at a premium FCF multiple of 10-15x as its hedges mature and share repurchases continue, projecting that the stock price could exceed $50 per share due to higher-than-expected FCF per share from its low-cost approach [3] Market Position - CNX Resources is not among the 30 most popular stocks among hedge funds, with 33 hedge fund portfolios holding the stock at the end of Q2 2025, down from 36 in the previous quarter [4] - While acknowledging CNX Resources' potential, the analysis suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]

Core Insights - CNX Resources Corporation is identified as a cheap stock with potential for the next five years, despite Barclays lowering its price target to $32 from $33 while maintaining an Equal Weight rating [1] Company Performance - In Q2 2025, CNX Resources reported a one-rig drilling schedule and anticipates a strong capital efficiency ratio of approximately $0.85 per Mcf moving forward [2] - Sequential production declines are expected in Q3 and Q4 of 2025 due to a front-loaded turn-in-line schedule earlier in the year, leading to a temporary lull before new wells come online in late Q4 [2] - Capital expenditures are projected to be lighter in Q3 but expected to increase again in Q4 as drilling and completion activities resume [3] Operational Highlights - The performance of Utica wells was slightly above expectations in Q2, with all wells meeting internal targets and costs currently below target [3] - The Utica wells are now considered competitive with Marcellus opportunities based on internal rate of return [3] Company Overview - CNX Resources Corporation is an independent natural gas and midstream company focused on acquiring, exploring, developing, and producing natural gas properties in the Appalachian Basin [4]

Core Insights - CNX Resources Corp. will announce its Q3 2025 financial results on October 30 at 6:45 a.m. Eastern Time, followed by a Q&A conference call and webcast [1][2][3] Company Overview - CNX Resources Corporation is a premier ultra-low carbon intensive natural gas development, production, midstream, and technology company based in Appalachia, a region rich in energy resources [2] - The company has a 161-year legacy, a substantial asset base, and focuses on technology development and innovation, along with astute capital allocation methodologies [2] - As of December 31, 2024, CNX had 8.54 trillion cubic feet equivalent of proved natural gas reserves [2]