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1. Company Snapshot

1.a. Company Description

CNX Resources Corporation, an independent natural gas and midstream company, acquires, explores for, develops, and produces natural gas properties in the Appalachian Basin.The company operates in two segments, Shale and Coalbed Methane.It produces and sells pipeline quality natural gas primarily for gas wholesalers.


The company owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 526,000 net Marcellus Shale acres; and approximately 610,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 1,006,000 net acres in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia.It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 282,000 net CBM acres in Central Appalachia, as well as 1,733,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico.In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities.


It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties.The company was formerly known as CONSOL Energy Inc.and changed its name to CNX Resources Corporation in November 2017.


CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

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1.b. Last Insights on CNX

CNX Resources' recent performance was positively driven by strong Q3 earnings, with revenues and earnings rising nearly 20% year-over-year, fueled by higher production volumes and share buybacks. The company's quarterly earnings of $0.49 per share beat the Zacks Consensus Estimate of $0.37 per share. Additionally, CNX Resources raised its 2025 production volume guidance. The company also announced executive leadership appointments, including Alan Shepard as President and CEO, and Everett Good as CFO, effective January 1, 2026. (Source: Marketbeat.com, 15 brokerages recommend "Reduce")

1.c. Company Highlights

2. CNX Resources' Q4 Earnings: A Strong Performance

CNX Resources reported a strong quarterly performance, with actual EPS coming in at $0.68, significantly beating estimates of $0.4. Revenue growth is expected to continue, with analysts estimating an 8.9% increase next year. The company's financial performance was robust, driven by its diversified business segments, including its RMG business line, which has seen stable prices in the Pennsylvania Tier 1 REC market since spring 2023, reflecting the marginal cost of bringing on new renewable supply.

Publication Date: Feb -16

📋 Highlights
  • CapEx Allocation:: 60% of annual capital expenditure to be spent in first half, enabling potential frac activity acceleration in second half.
  • 45Z Revenue Outlook:: $30 million annualized from methane capture/utilization at current production levels.
  • Hedging Strategy:: 80% hedged for 2027 with a weighted average NYMEX price of $4.
  • Utica Program:: 5 laterals to be completed in 2025, with 2026 timing due to non-reduced focus on the asset.
  • Marcellus Inventory:: 40-50,000 acres of remaining drilling inventory in Southwest PA Marcellus.

Operational Highlights

The company's operational performance was also noteworthy, with production expected to remain flat throughout the year. CNX has done a tremendous job keeping the field running, with no disruptions to operations or volumes expected in the first quarter due to weather events. The Utica program for 2026 is not indicative of a decreased focus on the asset, but rather a timing issue, with about five Utica laterals to be completed this year.

New Tech Business and Hedging Strategy

CNX is making progress in its new tech business, with the adoption of AutoSet technology providing cost savings, environmental benefits, and safety benefits. The company is also exploring CNG and LNG ambitions. In terms of hedging strategy, CNX aims to be approximately 80% hedged for 2027, with a weighted average NYMEX price of about $4, providing a degree of certainty around future cash flows.

Valuation and Outlook

CNX's valuation metrics suggest that the market has a relatively positive view of the company's prospects, with a P/E Ratio of 8.69 and an EV/EBITDA of 5.39. The company's ROIC of 11.18% and ROE of 15.52% indicate a strong ability to generate returns on capital and equity. With a Free Cash Flow Yield of 9.24%, CNX appears to be generating significant cash flows relative to its market capitalization, as Tyler Lewis, Senior Vice President of Finance and Treasurer noted, "the team has done a tremendous job keeping the field running."

3. NewsRoom

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CNX Resources Corporation Announces Pricing of $500 Million of Senior Notes

Feb -17

Source: prnewswire.com

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CNX Resources Corporation Announces Tender Offer for its 6.000% Senior Notes due 2029

Feb -17

Source: prnewswire.com

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CNX Resources Corporation Announces Private Offering of $500 Million of Senior Notes

Feb -17

Source: prnewswire.com

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Mason Hawkins' Strategic Moves: IAC Inc Sees a 44.15% Increase

Feb -13

Source: gurufocus.com

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CNX Resources (CNX) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -11

Source: zacks.com

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AlphaQuest LLC Boosts Stake in CNX Resources Corporation. $CNX

Jan -31

Source: defenseworld.net

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CNX Resources Q4 Earnings and Sales Beat Estimates, Production Up Y/Y

Jan -30

Source: zacks.com

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CNX Resources: The Company Will Do Fine, But Others Will Do Better

Jan -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.91%)

6. Segments

Other

Expected Growth: 8%

CNX Resources Corporation's 8% growth is driven by increasing natural gas production, strong operational efficiency, and strategic cost management. Additionally, the company's focus on Marcellus and Utica shale plays, coupled with its robust hedging program, has enabled it to capitalize on favorable market conditions, resulting in significant revenue growth.

Shale

Expected Growth: 15%

CNX Resources Corporation's 15% growth in Shale is driven by increased production volumes, improved operational efficiencies, and strategic cost reductions. Additionally, favorable market conditions, including higher natural gas prices and growing demand, contribute to the segment's growth. Furthermore, the company's focus on developing its core Marcellus and Utica assets, as well as its disciplined capital allocation, support the segment's expansion.

Coalbed Methane

Expected Growth: 10%

CNX Resources Corporation's Coalbed Methane segment growth is driven by increasing natural gas demand, proximity to high-growth markets, and strategic acquisitions. Additionally, advancements in drilling and completion technologies, improved well designs, and enhanced operational efficiencies contribute to the 10% growth rate.

7. Detailed Products

Natural Gas

CNX Resources Corporation is a leading independent natural gas exploration, production, and midstream company, with operations primarily in the Appalachian Basin.

Natural Gas Liquids (NGLs)

CNX Resources Corporation produces NGLs, including ethane, propane, and butane, as a byproduct of natural gas production.

Crude Oil

CNX Resources Corporation produces crude oil as a byproduct of natural gas production in certain areas.

Midstream Services

CNX Resources Corporation provides midstream services, including gathering, processing, and transmission of natural gas and NGLs.

8. CNX Resources Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CNX Resources Corporation is medium due to the availability of alternative energy sources such as solar and wind power. However, the company's focus on natural gas production and its established infrastructure reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for CNX Resources Corporation is low due to the company's diversified customer base and the lack of concentration in the natural gas market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for CNX Resources Corporation is medium due to the company's dependence on third-party contractors and suppliers for drilling and extraction services. However, the company's scale and vertical integration reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for CNX Resources Corporation is low due to the high barriers to entry in the natural gas industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for CNX Resources Corporation is high due to the competitive nature of the natural gas industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.16%
Debt Cost 8.43%
Equity Weight 64.84%
Equity Cost 10.77%
WACC 9.95%
Leverage 54.23%

11. Quality Control: CNX Resources Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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California Resources

A-Score: 5.9/10

Value: 8.4

Growth: 3.3

Quality: 7.7

Yield: 6.0

Momentum: 4.0

Volatility: 5.7

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SM Energy

A-Score: 5.2/10

Value: 9.6

Growth: 5.7

Quality: 6.6

Yield: 5.0

Momentum: 0.5

Volatility: 3.7

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Crescent Energy

A-Score: 5.2/10

Value: 7.5

Growth: 4.2

Quality: 5.0

Yield: 9.0

Momentum: 1.5

Volatility: 3.7

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Marathon Oil

A-Score: 4.6/10

Value: 4.7

Growth: 6.3

Quality: 6.5

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

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CNX Resources

A-Score: 4.5/10

Value: 6.5

Growth: 3.1

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 7.0

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Kosmos Energy

A-Score: 3.3/10

Value: 9.8

Growth: 5.2

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.47$

Current Price

40.47$

Potential

-0.00%

Expected Cash-Flows