PART I FINANCIAL INFORMATION [Item 1. Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Presents CNX Resources Corporation's unaudited interim financial statements for Q2 2025 and 2024, with detailed notes on accounting policies, acquisitions, and debt [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) CNX reported a **net income of $432.5 million** in Q2 2025, reversing a **net loss of $18.3 million** in Q2 2024, driven by derivative gains and increased revenue | Indicator | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue and Other Operating Income** | $962,422 | $321,443 | $1,044,811 | $705,995 | | **Net Income (Loss)** | $432,521 | $(18,261) | $234,806 | $(11,410) | | **Diluted Earnings (Loss) per Share** | $2.53 | $(0.12) | $1.37 | $(0.07) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$8.99 billion** as of June 30, 2025, from **$8.51 billion** at year-end 2024, driven by property, plant, and equipment | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $394,225 | $370,635 | | **Total Property, Plant and Equipment—Net** | $7,858,604 | $7,384,111 | | **TOTAL ASSETS** | **$8,987,867** | **$8,511,903** | | **Total Current Liabilities** | $1,197,683 | $1,122,578 | | **Total Non-Current Liabilities** | $3,697,471 | $3,291,295 | | **TOTAL LIABILITIES** | **$4,895,154** | **$4,413,873** | | **TOTAL STOCKHOLDERS' EQUITY** | **$4,092,713** | **$4,098,030** | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$498.1 million** for H1 2025, while investing activities used **$728.5 million** due to the Apex acquisition | Cash Flow Activity (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $498,147 | $376,830 | | **Net Cash Used in Investing Activities** | $(728,519) | $(304,199) | | **Net Cash Provided by (Used in) Financing Activities** | $191,190 | $(69,151) | | **Net (Decrease) Increase in Cash** | $(39,182) | $3,480 | [Notes to Unaudited Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Details key accounting policies, the **$517.6 million Apex Energy II acquisition**, a **$200 million senior note offering**, derivative instruments, and the ongoing share repurchase program - On January 27, 2025, the company completed the acquisition of Apex Energy II, LLC for approximately **$517.6 million** in cash, net of cash received, expanding CNX's undeveloped leasehold in central Pennsylvania[79](index=79&type=chunk) - During the first six months of 2025, CNX issued an additional **$200 million** of its 7.25% senior notes due 2032[104](index=104&type=chunk) - The company repurchased and retired **7.8 million shares** for **$241.6 million** in the first six months of 2025, with **$711.6 million** remaining available under the board-approved repurchase program as of June 30, 2025[161](index=161&type=chunk)[162](index=162&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the shift to **net income in Q2 2025**, driven by higher natural gas prices, production volumes, and derivative gains, alongside liquidity and capital resources [Results of Operations](index=35&type=section&id=Results%20of%20Operations) CNX reported **Q2 2025 net income of $433 million**, a significant improvement from a **$18 million net loss** in Q2 2024, driven by derivative gains and increased sales volumes | Metric (Q2 2025 vs Q2 2024) | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | **Net Income (Loss) (in millions)** | $433 | $(18) | +$451 | | **Total Sales Volumes (Bcfe)** | 167.6 | 134.0 | +33.6 | | **Average Natural Gas Sales Price ($/Mcf)** | $2.84 | $1.60 | +$1.24 | | **Cash Settlement on Derivatives (in millions)** | $(35) | $110 | $(145) | - The increase in sales volumes was primarily attributed to the Apex Transaction completed in Q1 2025 and the timing of new wells being turned-in-line[185](index=185&type=chunk) - The Shale segment's earnings before tax rose to **$196 million** in Q2 2025 from **$143 million** in Q2 2024, driven by a **27.4% increase** in sales volumes and an **80% increase** in the average natural gas sales price[190](index=190&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) CNX maintains sufficient liquidity for the next twelve months, with **$450-$500 million** in forecasted 2025 capital expenditures and compliance with all debt covenants - The company expects capital expenditures to range between **$450 million** and **$500 million** for the full year 2025, with **$245 million** expended in the first six months[276](index=276&type=chunk) - As of June 30, 2025, CNX was in compliance with all debt covenants and expects to remain so even with potential commodity price declines[274](index=274&type=chunk) | Cash Flow (Six Months Ended June 30, 2025) | Amount (in millions) | | :--- | :--- | | **Cash Provided by Operating Activities** | $498 | | **Cash Used in Investing Activities** | $(729) | | **Cash Provided by Financing Activities** | $191 | | Obligation Type | Total Amount (in thousands) | | :--- | :--- | | **Purchase Order Firm Commitments** | $14,787 | | **Gas Firm Transportation and Processing** | $1,445,620 | | **Long-Term Debt** | $2,624,887 | | **Interest on Long-Term Debt** | $822,515 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) CNX manages commodity price and interest rate risks using derivatives, with open derivative instruments in a **$471 million net liability** position as of June 30, 2025 - The company's open derivative instruments had a net liability fair value of **$471 million** at June 30, 2025[295](index=295&type=chunk) - A hypothetical **10% increase** in future natural gas prices would decrease the fair value of open derivative instruments by **$508 million** as of June 30, 2025[295](index=295&type=chunk) - A hypothetical **100 basis-point increase** in interest rates would decrease pre-tax future earnings by **$3 million** on an annualized basis, based on variable-rate debt outstanding at June 30, 2025[296](index=296&type=chunk) | Period | Hedged Bcf | Weighted Average Hedge Price per Mcf | | :--- | :--- | :--- | | **Q3 2025** | 121.9 | $2.56 | | **Q4 2025** | 121.9 | $2.55 | | **Full Year 2026** | 437.7 | $2.70 | | **Full Year 2027** | 339.7 | $3.26 | [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[299](index=299&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[300](index=300&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings from Note 11 of the financial statements, with no other significant legal or governmental proceedings expected to materially affect financial results - The company refers to Note 11 for details on commitments and contingent liabilities, which includes information on lawsuits related to the UMWA 1992 Benefit Plan and the 1974 Pension Plan[302](index=302&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2024 Form 10-K, except for a previously disclosed risk factor in the Q1 2025 Form 10-Q - There have been no material changes to the Company's risk factors as set forth in the 2024 Form 10-K, other than what was disclosed in the Q1 2025 Form 10-Q[304](index=304&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) CNX repurchased **3,658,251 shares** in Q2 2025, with **$711.6 million** remaining available under the share repurchase program as of June 30, 2025 | Period (2025) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **April** | 1,436,840 | $29.92 | | **May** | 1,306,351 | $31.60 | | **June** | 915,060 | $32.78 | | **Q2 Total** | **3,658,251** | N/A | - As of the end of June 2025, approximately **$711.6 million** remained available for purchase under the company's share repurchase program[305](index=305&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers modified or terminated any Rule 10b5-1 trading arrangements during the second quarter of 2025[307](index=307&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents

Core Insights - CNX Resources Corporation (CNX) reported second-quarter 2025 operating earnings of 59 cents per share, exceeding the Zacks Consensus Estimate of 39 cents by 51.3% and increasing 63.9% from 36 cents in the same quarter last year [1][8] CNX's Revenues - The company reported revenues of $450 million, missing the Zacks Consensus Estimate of $457 million by 1.4%, but showing a 30.1% increase from $346 million in the prior-year quarter [2] Highlights of CNX's Q2 Release - The average selling price in the quarter was $2.68 per thousand cubic feet equivalent (Mcfe), up 3.9% from $2.58 a year ago - Total production cost was $1.67 per Mcfe, down 2.3% year over year - Total production volumes were 167.6 billion cubic feet equivalent (Bcfe), up 25.1% year over year - Interest expenses totaled $44 million, up 13.9% year over year [3][8] Share Repurchase and Debt Management - During the second quarter, CNX repurchased 3.7 million shares at an average price of $31.24 per share for a total cost of $114 million, representing approximately 40% of its outstanding shares over the past 19 quarters - CNX's adjusted net debt decreased by $69 million [4][8] Financial Update - As of June 30, 2025, CNX had cash and cash equivalents of $3.39 million, down from $17.2 million as of December 31, 2024 - Long-term debt increased to $2.29 billion from $1.84 billion as of December 31, 2024 - Cash from operating activities for the first six months of 2025 totaled $282.5 million compared to $191.8 million in the year-ago period, with free cash flow amounting to $188 million [5] Capital Expenditure - Capital expenditure for the first six months totaled $113.6 million, down from $151.9 million in the year-ago period [6] CNX's Guidance - CNX expects total capital expenditure for 2025 to be between $450 million and $500 million - The company anticipates 2025 production volume to be in the range of 615-620 Bcfe, an increase from the previous guidance of 605-620 Bcfe - Total free cash flow is expected to be $575 million [7][9]

Financial Data and Key Metrics Changes - The company reported a production efficiency gain contributing to overall outperformance in production, driven by new well performance and operational execution [46] - The capital efficiency ratio is approximately $0.85 per million, with a targeted production of $580 million over a $500 million CapEx [11] Business Line Data and Key Metrics Changes - The E&P business is maintaining initial activity levels due to expected storage levels creeping towards 4 TCF, with no changes anticipated at this time [10] - The company plans to continue its one rig program for drilling, with completion activities expected to pick up in the fall [19] Market Data and Key Metrics Changes - The company is optimistic about the potential of the 45Z tax credit program, with eligibility starting in 2025 and a potential annual run rate of $30 million [8][28] - The market for renewable energy credits is seen as a significant opportunity, with the company focusing on maximizing value from various markets [52] Company Strategy and Development Direction - The company is focused on optimizing operational efficiency in the Utica play while continuing to develop its core Southwest PA field [23] - There is an emphasis on balancing the harvesting of fully developed fields with new opportunities in the Utica area [60] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious optimism regarding in-basin demand for natural gas, which is expected to positively impact long-term pricing [41][42] - The company is in a wait-and-see mode regarding the timing of new demand projects and their impact on capital allocation [44] Other Important Information - The company is actively engaging in discussions about the RMG product as a sustainable energy solution, particularly in relation to data centers [36] - The management highlighted the importance of sustainability solutions in the context of growing demand for natural gas [54] Q&A Session Summary Question: Details on the 45Z tax credit timing and eligibility - The first year eligibility to claim credits would be in 2025, with a potential annual run rate of $30 million starting in 2026 [7][8] Question: Plans for E&P business volume growth - The company plans to maintain initial activity levels due to current storage forecasts, with no changes expected [10] Question: Drilling and completion activity levels in the second half - The bulk of turn-in-lines were weighted towards the first half of the year, with a sequential decline in production expected in Q3 and Q4 [17] Question: Cost competitiveness of the Utica play - Current costs make the Utica wells competitive with the best in-basin opportunities, with a focus on improving operational efficiency [51] Question: Impact of in-basin demand on long-term natural gas prices - In-basin demand is expected to be bullish for natural gas prices, but the company remains cautious about locking in long-term agreements until more data centers are connected [41][62]

Financial Data and Key Metrics Changes - The company reported a production efficiency gain contributing to overall outperformance in production, driven by new well performance and operational execution [46] - The capital efficiency ratio is approximately $0.85 per million, with a production target of $580 million against a capital expenditure of $500 million [10][11] Business Line Data and Key Metrics Changes - The company plans to maintain initial activity levels in the E&P business, with no changes expected at the current time due to storage levels approaching four trillion cubic feet [9] - The Utica wells are performing slightly above expectations, with ongoing efforts to improve operational efficiency and reduce costs [22][23] Market Data and Key Metrics Changes - The company anticipates a sequential decline in production for Q3 and Q4, with a potential increase in activity levels in late 2025 as they prepare for winter [17][19] - The market for renewable natural gas (RMG) is expected to grow, with discussions ongoing with tech companies regarding sustainable energy solutions [35][54] Company Strategy and Development Direction - The company is focused on balancing the development of its core Southwest PA field while also exploring opportunities in the Utica region [60] - There is an emphasis on leveraging AI and energy solutions to enhance the value of RMG products in the market [35][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the 45Z tax credit program, with expectations for a $30 million annual run rate starting in 2026 [5][28] - The company remains cautious about locking in long-term agreements until there is more clarity on in-basin demand and the connection of data centers to natural gas projects [63][64] Other Important Information - The company is actively working on optimizing drilling and completion operations to improve performance and reduce costs in the Utica play [21] - The management highlighted the importance of sustainability solutions in the context of growing demand for natural gas, particularly from the tech industry [54] Q&A Session Summary Question: Details on the 45Z tax credit timing and eligibility - The first year eligibility to claim credits would be in 2025, with a potential run rate of $30 million starting in 2026 [5][6] Question: Plans for E&P business activity levels - The company will maintain initial activity levels, with no changes expected at this time due to current storage levels [9] Question: Drilling and completion activity levels in the second half - A sequential decline in production is expected for Q3 and Q4, with a potential increase in activity levels in late 2025 [17][19] Question: Cost competitiveness of Utica wells - Current cost structures make Utica wells competitive with Marcellus opportunities, with a focus on improving repeatability of results [51][60] Question: Impact of in-basin demand on long-term natural gas prices - In-basin demand is expected to be bullish for natural gas prices, but the company is cautious about its hedging strategy in the short term [41][42] Question: Recognition of gas value in voluntary carbon markets - The company will sell gas to whichever market recognizes the highest value, with expectations for voluntary pricing to rival regulatory pathways in the long term [52][54]

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]