1Q 2025 Earnings Results & Supplemental Information of CNX Resources | TABLE OF CONTENTS: Page: | | | --- | --- | | Production Volumes and Activity | 2 | | Summary | | | Hedge Volumes and Pricing… | 3 | | Gas Hedging Gain/Loss Projections and Actuals | 4 | | Consolidated Statements of Income | 5 | | Consolidated Balance Sheets | 6 | | Consolidated Statements of Cash Flows… | 7 | | Market Mix and Natural Gas Price Reconciliation… | 8 | | Price and Cost Data (Per Mcfe) | 9 | | Guidance… | 10 | | Year end 2024 ...

Core Insights - CNX Resources Corporation has released its financial and operational results for the first quarter of 2025, which can be accessed on its website [1][2] - The company emphasizes its position as a premier, ultra-low carbon intensive natural gas development and production company in the energy-rich region of Appalachia [4] Financial Performance - Detailed earnings results, production volumes, hedging information, and financial statements for the first quarter are available for review [2] - As of December 31, 2024, CNX reported 8.54 trillion cubic feet equivalent of proved natural gas reserves [4] Company Overview - CNX Resources Corporation is a member of the Standard & Poor's Midcap 400 Index, highlighting its significant market presence [4] - The company focuses on responsible resource development and aims to create long-term per share value for shareholders, employees, and local communities [4] Conference Call Information - A Q&A conference call regarding the earnings results is scheduled, with details available on the Investor Relations page of the company's website [3][5]

Core Insights - The oil/energy sector is experiencing significant challenges in Q1 2025 due to fluctuating commodity prices and market uncertainties, with oil prices declining and natural gas prices increasing, creating a mixed environment for companies in this sector [1] Oil Price Performance - In Q1 2025, the average price of West Texas Intermediate crude fell to $71.84 per barrel, down from $77.56 in the previous year, driven by concerns over weaker global economic growth, increased supply from non-OPEC+ nations, and lower-than-expected demand [2] - Escalating trade tensions and rising oil inventories further pressured oil prices [2] Natural Gas Price Trends - Natural gas prices increased significantly, with the Henry Hub spot price averaging $4.15 per million British thermal units (MMBtu), up from $2.13 per MMBtu in the prior-year quarter, primarily due to colder weather boosting heating demand and rising LNG exports [3] Earnings Outlook for Oil/Energy Sector - Oil/energy companies in the S&P 500 are projected to report an 11.1% year-over-year earnings decline for Q1 2025, continuing a downward trend from the previous quarter [4] - In contrast, the broader S&P 500 is expected to see a 6.8% earnings increase, highlighting the underperformance of the oil/energy sector [5] Revenue Trends - Revenue for oil/energy companies is projected to decline by 0.4% year-over-year, while S&P 500 revenues are on track to grow by 3.9%, indicating struggles in maintaining top-line growth in a changing commodity environment [6] Margin Compression - The earnings drag from lower oil prices continues to dominate despite higher natural gas prices, compressing margins and making it difficult for companies to deliver consistent results [7][9] Sector Performance Comparison - Other sectors, such as Technology (+12.5%), Medical (+34.7%), and Utilities (+14.1%), are experiencing strong earnings growth, while the oil/energy sector remains the worst performer alongside other weak sectors like autos and basic materials [8] Company-Specific Earnings Insights - TechnipFMC plc (FTI) has an Earnings ESP of -0.92% and a Zacks Rank 3, indicating low chances of an earnings beat, with a consensus estimate of 36 cents per share, suggesting a 63.64% increase from the prior year [11][13] - Valero Energy Corporation (VLO) has an Earnings ESP of -14.71% and a Zacks Rank 3, with a consensus estimate of 43 cents per share, indicating an 88.74% decrease from the prior year [13] - RPC, Inc. (RES) has an Earnings ESP of 0.00% and a Zacks Rank 3, with a consensus estimate of 7 cents per share, suggesting a 46.15% decrease from the prior year [14][15] - CNX Resources Corporation (CNX) has an Earnings ESP of -2.96% and a Zacks Rank 3, with a consensus estimate of 65 cents per share, indicating a 44.44% increase from the prior year [16][17]

Core Insights - Analysts forecast CNX Resources Corporation will report quarterly earnings of $0.65 per share, reflecting a year-over-year increase of 44.4% [1] - Expected revenues are projected to be $495.75 million, showing a 30.1% increase compared to the same quarter last year [1] Earnings Estimates - There has been a downward revision of 3% in the consensus EPS estimate over the past 30 days, indicating a reappraisal by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [3] Key Metrics Forecast - The consensus estimate for 'NGLs - Gross Price' is $22.99, down from $23.94 in the previous year [4] - 'Oil/Condensate - Gross Price' is expected to be $54.41, compared to $64.08 in the same quarter last year [5] - 'Average Daily Production' is forecasted to reach 1,658.29 Mcfe/D, up from 1,542.4 Mcfe/D in the same quarter last year [5] - 'Total Production Volumes' are expected to be 149.25 Bcfe, compared to 140.4 Bcfe in the same quarter last year [6] - 'Natural Gas - Sales Volume' is projected to be 137.11 MMcf, up from 128.94 MMcf in the same quarter last year [6] - 'Oil/Condensate - Sales Volume' is expected to be 47.62 MBBL, compared to 29 MBBL in the same quarter last year [7] - 'NGL - Sales Volume' is forecasted to reach 2,133.99 MBBL, up from 1,873 MBBL in the same quarter last year [7] Stock Performance - CNX Resources shares have returned -6% over the past month, compared to the Zacks S&P 500 composite's -8.9% change [8] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [8]

Core Viewpoint - CNX Resources Corporation is set to release its first-quarter 2025 results on April 24, with expectations of strong earnings and revenue growth driven by recent acquisitions and improved production metrics [1][4]. Group 1: Upcoming Results Expectations - The Zacks Consensus Estimate for earnings is 65 cents per share, reflecting a year-over-year increase of 44.4% [4]. - Revenue is expected to reach $495.56 million, indicating a year-over-year increase of 30.1% [4]. - Total production volumes are projected at 149.25 billion cubic feet equivalent, up 6.3% year over year [4]. Group 2: Key Factors Influencing Performance - The acquisition of Apex Energy's natural gas upstream and midstream business in January 2025 is expected to enhance CNX's operational footprint and free cash flow per share [2]. - The ability to generate free cash flow may have facilitated debt reduction and share buybacks, positively impacting the bottom line [3]. Group 3: Pricing Metrics - The consensus estimate for the average natural gas sales price is $3.42 per thousand cubic feet equivalent, up 57.6% year over year [5]. - The Zacks Consensus Estimate for realized natural gas price is $2.74 per thousand cubic feet, reflecting a 5.8% increase from the previous year [5]. Group 4: Earnings Prediction Model - The current Earnings ESP for CNX Resources is -2.96%, indicating that an earnings beat is not anticipated this quarter [6]. - CNX Resources holds a Zacks Rank of 3, suggesting a neutral outlook [7].

Company Overview - CNX Resources Corporation (CNX) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025, with a consensus outlook indicating a positive earnings picture [1] - The upcoming earnings report is scheduled for April 24, and the stock may react positively if key numbers exceed expectations, while a miss could lead to a decline [2] Earnings Estimates - The Zacks Consensus Estimate anticipates quarterly earnings of $0.65 per share, reflecting a year-over-year increase of 44.4% [3] - Revenues are projected to be $495.56 million, representing a 30.1% increase from the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.26%, indicating a reassessment by analysts regarding the company's earnings prospects [4] - The Most Accurate Estimate for CNX is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.08%, suggesting a bearish outlook from analysts [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [6][8] - However, a negative Earnings ESP reading does not necessarily predict an earnings miss, making it challenging to forecast outcomes with confidence [9] Historical Performance - In the last reported quarter, CNX Resources exceeded the expected earnings of $0.43 per share by delivering $0.57, resulting in a surprise of 32.56% [12] - The company has successfully beaten consensus EPS estimates in each of the last four quarters [13] Conclusion - While CNX Resources does not appear to be a strong candidate for an earnings beat based on current estimates, investors should consider other factors before making investment decisions [16]

Group 1 - CNX Resources Corp. will announce its Q1 2025 financial results on April 24, 2025, at 6:45 a.m. Eastern Time [1] - A press release will be issued containing links to prepared remarks, presentation materials, and supplemental information for Q1 2025 [1] - A Q&A conference call and webcast will follow the financial results announcement [2] Group 2 - CNX Resources is a premier ultra-low carbon intensive natural gas company based in Appalachia, with a legacy of 161 years [3] - The company has 8.54 trillion cubic feet equivalent of proved natural gas reserves as of December 31, 2024 [3] - CNX Resources is a member of the Standard & Poor's Midcap 400 Index [3]

Core Perspective - CNX Resources Corporation is launching a new campaign focused on erasing school lunch debt, supporting local veterans, and addressing essential needs of families in the Appalachia region as part of its Appalachia First strategic vision [1][5]. Group 1: Philanthropic Approach - CNX adopts a hyper-localized investment strategy, prioritizing direct support to individuals and entities in need rather than large non-profits, fostering a virtuous cycle of community investment [2]. - The 2025 campaign will be fully funded by the CEO, who will reduce his compensation accordingly, following a cumulative offset of $4 million since 2022 [3]. Group 2: Initiatives and Impact - The CNX Foundation's flagship Mentorship Academy initiative aims to provide career-readiness programming and access to employment opportunities for underserved youth in the region [4]. - The campaign includes specific initiatives such as eliminating school lunch debt, supporting veterans through local organizations, and addressing essential needs like medical expenses for families [7][8]. Group 3: Company Overview - CNX Resources Corporation is a premier natural gas company with a focus on ultra-low carbon intensity, operating in the energy-rich Appalachia region, holding 8.54 trillion cubic feet equivalent of proved natural gas reserves as of December 31, 2024 [6].

Operations and Infrastructure - CNX owns or operates approximately 2,700 miles of natural gas gathering pipelines and has developed a diversified portfolio of firm transportation capacity options to support its production[82][84]. - CNX's midstream operations include providing turn-key solutions for water sourcing, delivery, and disposal for both its own operations and third parties[86]. - The company has a workforce of 458 employees as of December 31, 2024, with a focus on health, safety, and continuous training[101]. - The company’s operations are subject to risks related to the availability of personnel, services, and raw materials, which could impair production capabilities[137]. - The company relies on third-party pipeline and processing systems, which could limit operations and sales due to disruptions or capacity constraints[137]. - The company relies on third-party contractors for key services, and shortages in personnel or equipment could lead to increased costs and decreased production levels[182]. Environmental and Regulatory Compliance - The company operates under various federal, state, and local laws, with a strong focus on compliance with environmental regulations affecting all aspects of operations[109]. - Hydraulic fracturing activities are regulated by state commissions and the EPA, which has proposed regulations requiring disclosure of chemicals used[114]. - The Clean Air Act and corresponding regulations impose requirements on air emissions from natural gas production and processing operations[116]. - The Clean Water Act regulates discharges of pollutants into surface waters, requiring permits and compliance monitoring[117]. - The Endangered Species Act may impact operations in protected habitats, potentially leading to delays in permits[118]. - The Resource Conservation and Recovery Act (RCRA) imposes requirements for the management and disposal of hazardous and non-hazardous wastes from operations[120]. - Climate change regulations may increase costs and impact operations, necessitating new equipment or emission credits[125]. - Increased environmental regulations could lead to higher costs for permitting, equipping, and monitoring emissions, impacting profitability[201]. - The company is subject to various stringent environmental laws that may impose significant compliance costs and operational restrictions[201]. - Local regulations in Pennsylvania have increased setback requirements for new well pads, potentially impacting future operations[211]. Financial Performance and Risks - CNX's natural gas is primarily sold at market prices under short-term sales contracts, with significant price fluctuations influenced by seasonal and market conditions[87]. - Natural gas and NGL prices are highly volatile, influenced by supply and demand factors, with a significant decline in prices adversely affecting the company's financial condition[140]. - The company’s financial results are significantly affected by the prices received for natural gas and NGLs, which have been depressed due to oversupply in the market[140]. - The company anticipates that a decrease in international demand for natural gas could adversely affect pricing and, consequently, its results of operations and liquidity[152]. - The company’s revenue may be reduced if there is an economic downturn leading to decreased demand for natural gas and LNG[158]. - The company’s natural gas reserves are significantly impacted by price fluctuations; a $0.10 decline in natural gas prices could reduce the pre-tax present value of proved reserves from $3.8 billion to $3.6 billion[165]. - The company faces risks related to competition and consolidation in the natural gas industry, which may impact its ability to sell products and midstream services[146]. - Economic downturns in industries served by the company could materially affect liquidity and operational results, with potential adverse effects from a focus on carbon-neutrality and alternative energy sources[150]. - The company may incur significant costs and liabilities due to environmental regulations and climate change legislation, which could increase operating costs and reduce asset values[137]. - The company faces potential liabilities from lawsuits related to climate change and environmental impacts, which could result in financial damages[200]. - Changes in federal or state tax laws could negatively affect the company's financial position and profitability, particularly regarding natural gas exploration[216]. Strategic Initiatives and Future Outlook - The company expects to capture approximately 17-18 Bcfe of waste methane annually by 2025, which will qualify for various environmental programs[95]. - CNX is actively pursuing the commercialization of proprietary technologies aimed at reducing costs and emissions during natural gas development phases[97]. - The company is a participant in the Appalachian Regional Clean Hydrogen Hub coalition, focusing on developing hydrogen energy solutions[98]. - The company expects environmental attributes to grow as a source of future revenue, but current market conditions are volatile and uncertain[221]. - The company expects to continue substantial capital expenditures for the development and acquisition of natural gas reserves, which are critical for maintaining and growing the business[174]. - CNX's strategic growth depends on optimal capital allocation and the ability to identify new business opportunities, including investments in proprietary technologies[239][240]. Debt and Capital Management - As of December 31, 2024, CNX's total long-term indebtedness was approximately $2.2 billion, including $500 million of 6.00% Senior Notes due 2029 and $400 million of 4.75% Senior Notes due 2030[223][225]. - The borrowing base under CNX's senior secured revolving credit facility is currently $2.3 billion, which is subject to redetermination twice per year[228]. - The company’s ability to refinance existing senior notes may be limited, affecting its capital raising efforts[152]. - CNX's financial covenants limit the incurrence of additional indebtedness and impose restrictions on operations, which could lead to an event of default if not complied with[226]. - The company may face liquidity problems if cash flows are insufficient to meet debt service obligations, potentially requiring asset sales[227]. - The company closed a private offering of $200 million additional 7.25% senior notes due 2032 on January 21, 2025[225]. Cybersecurity and Operational Risks - Cybersecurity incidents pose a risk to CNX's operations, potentially leading to data loss, operational disruptions, and financial losses[248]. - Increased dependence on digital technologies raises the risk of cybersecurity incidents, which could disrupt business operations and impact financial performance[249]. - Cybersecurity incidents could result in supply chain disruptions and operational failures, affecting production and delivery capabilities[254]. - Terrorist activities, including eco-terrorism, could adversely affect CNX's operations and the broader energy industry, impacting economic conditions and market liquidity[255].

Group 1 - Elliott Gue is recognized as a leading expert in the energy sector, having dedicated years to understanding its dynamics through various means such as attending industry conferences and engaging with management teams [1] - In 2008, Elliott Gue was acknowledged as "the world's leading energy strategist" during the G-8 Summit in Tokyo, highlighting his expertise and investment acumen [1] - In October 2012, the launch of the Energy & Income Advisor newsletter aimed to identify profitable opportunities in the energy sector, covering a range of investment types including growth stocks and high-yielding utilities [1] Group 2 - The Energy & Income Advisor publication continues to provide in-depth analysis and rational assessments of investment opportunities in the energy sector, maintaining its focus despite changes in the masthead [1]