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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 Beats Expectations with Strong Q3 Earnings

CNX Resources reported a strong financial performance in the third quarter of 2025, with earnings per share (EPS) coming in at $0.49, significantly beating analyst estimates of $0.37. Revenue growth was robust, driven by the company's efficient operations and favorable market conditions. The company's focus on generating free cash flow is evident, with free cash flow guidance remaining at $575 million pre-asset sale. The actual figures for revenue and margin were not explicitly stated, but the company's ability to maintain its production levels and control costs is a positive indicator.

Publication Date: Nov -02

📋 Highlights
  • Free Cash Flow & Buyback:: $575 million pre-asset sale guidance driven by significant free cash flow generation.
  • Utica Acquisition:: Acquired remaining unleased Utica rights under Apex acreage to leverage existing infrastructure.
  • Drilling Efficiency:: 20% cost reduction in drilling to $1,750/foot, with further optimization via pad testing and spacing trials.
  • 45Z Rule-Making:: Awaiting final rule by year-end to shape future tax incentives and operational strategies.
  • Utica Development:: Focused on deep Utica in Central PA with 1 dedicated rig, aiming for efficient infrastructure and 20% cost cuts through spacing tests.

Operational Efficiency and Cost Reduction

The company has made significant strides in drilling efficiency, reducing drilling costs by almost 20% to $1,750 per foot, as noted by Navneet Behl. This improvement in operational efficiency is a key driver of the company's ability to maintain its production levels while controlling costs. The company's focus on reducing per foot cost is expected to continue, with the potential for further optimization with steady-state development. As Alan Shepard mentioned, the company is "long-term bullish on the prospect for AI-generated new demand in the basin," which could provide a tailwind for future growth.

Valuation and Growth Prospects

CNX Resources' valuation metrics indicate a relatively attractive position, with a P/E Ratio of 16.99 and a P/S Ratio of 2.26. Analysts estimate next year's revenue growth at 3.7%, which, combined with the company's operational efficiency and cost reduction efforts, could drive further improvement in financial performance. The company's EV/EBITDA ratio of 6.91 suggests a reasonable valuation relative to its earnings before interest, taxes, depreciation, and amortization.

Future Plans and Development

The company is confident in its geological model and plans to step up development of the Utica play. The acquisition of the remaining unleased Utica rights underlying the Apex acreage is expected to leverage the company's infrastructure and drive future growth. The exact timing of development on the Utica acquisition is not yet determined, but the company plans to develop the field as part of its underwriting case. With the frac crews starting in October and TILs expected to come online in December, the company is poised for continued operational momentum.

3. NewsRoom

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Edgestream Partners L.P. Acquires 37,024 Shares of CNX Resources Corporation. $CNX

Dec -04

Source: defenseworld.net

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Creative Planning Buys 6,680 Shares of CNX Resources Corporation. $CNX

Nov -27

Source: defenseworld.net

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American Century Companies Inc. Reduces Holdings in CNX Resources Corporation. $CNX

Nov -26

Source: defenseworld.net

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CNX Resources Sees Unusually High Options Volume (NYSE:CNX)

Nov -25

Source: defenseworld.net

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Allworth Financial LP Buys 5,265 Shares of CNX Resources Corporation. $CNX

Nov -19

Source: defenseworld.net

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Alberta Investment Management Corp Decreases Stock Holdings in CNX Resources Corporation. $CNX

Nov -17

Source: defenseworld.net

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CNX Resources Corporation. $CNX Shares Sold by Envestnet Asset Management Inc.

Nov -16

Source: defenseworld.net

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Mason Hawkins' Strategic Moves: Rayonier Inc. Takes Center Stage with 6.09% Portfolio Share

Nov -14

Source: gurufocus.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: 8.0

Growth: 3.3

Quality: 8.2

Yield: 5.0

Momentum: 5.0

Volatility: 5.7

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SM Energy

A-Score: 5.3/10

Value: 9.4

Growth: 5.7

Quality: 6.8

Yield: 5.0

Momentum: 1.5

Volatility: 3.7

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Marathon Oil

A-Score: 5.3/10

Value: 5.8

Growth: 6.3

Quality: 6.6

Yield: 1.0

Momentum: 5.5

Volatility: 6.3

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Crescent Energy

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.2

Yield: 8.0

Momentum: 1.0

Volatility: 3.7

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CNX Resources

A-Score: 4.4/10

Value: 6.8

Growth: 3.1

Quality: 5.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

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Kosmos Energy

A-Score: 3.4/10

Value: 9.4

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

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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

40.9$

Current Price

40.9$

Potential

-0.00%

Expected Cash-Flows