8-K
CNX Resources Corp (CNX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): January 30, 2025
CNX Resources Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 001-14901 | 51-0337383 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
CNX Center
1000 Horizon Vue Drive
Canonsburg, Pennsylvania 15317
(Address of principal executive offices)
(Zip code)
Registrant's telephone number, including area code:
(724) 485-4000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered |
|---|---|---|
| Common Stock ($.01 par value) | CNX | New York Stock Exchange |
| Preferred Share Purchase Rights | -- | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition.
CNX Resources Corporation (“CNX” or the “Company”) today released financial and operational results for the fourth quarter and full fiscal year 2024 by posting those results on its website. A copy of those results is attached to this Current Report as Exhibit 99.1 and incorporated into this Item 2.02 by reference.
The information furnished pursuant to this Item 2.02 and Item 7.01, including Exhibit 99.1, are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD
The information set forth under Item 2.02 is incorporated into this Item 7.01 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit 99.1 | 4Q 2024 Earnings Results and Supplemental Information of CNX Resources dated January 30, 2025 |
|---|---|
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CNX RESOURCES CORPORATION
By: /s/ Alan K. Shepard
Alan K. Shepard
Chief Financial Officer and Executive Vice President
Dated: January 30, 2025
Document
| 4Q 2024 Earnings Results & | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Supplemental Information of CNX Resources | ||||||||||||
| TABLE OF CONTENTS: | Page: | |||||||||||
| Production Volumes and Activity Summary........................................................................................................................ | 2 | |||||||||||
| Hedge Volumes and Pricing…........................................................................................................................................... | 3 | |||||||||||
| 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 | |||||||||||
| Definitions.......................................................................................................................................................................... | 11 | |||||||||||
| Sales of Natural Gas, NGL and Oil, including Cash Settlements and Natural Gas, NGL and Oil Production Costs......... | 12 | |||||||||||
| Quarterly Adjusted EBITDAX and Adjusted Net Income.................................................................................................... | 13 | |||||||||||
| Operating Margin............................................................................................................................................................... | 14 | |||||||||||
| Cash Operating Margin...................................................................................................................................................... | 15 | |||||||||||
| Net Debt and Adjusted EBITDAX TTM.............................................................................................................................. | 16 | |||||||||||
| Free Cash Flow.................................................................................................................................................................. | 17 | |||||||||||
| Risk Factors....................................................................................................................................................................... | 18 | |||||||||||
| NOTE: Please note that CNX is unable to provide a reconciliation of non-GAAP projected financial results contained in this presentation, including the non-GAAP measures referenced above, to their respective comparable financial measure calculated in accordance with GAAP. This is due to our inability to calculate the comparable GAAP projected metrics, including operating income, net cash provided by operating activities and total production costs, given the unknown effect, timing, and potential significance of certain income statement items. | ||||||||||||
| --- | ||||||||||||
| PRODUCTION VOLUMES | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GAS | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 | ||||||
| Shale Sales Volumes (Bcf) | 115.6 | 110.8 | 111.7 | 119.4 | 457.5 | 123.9 | ||||||
| CBM Sales Volumes (Bcf) | 9.9 | 10.0 | 9.7 | 9.5 | 39.1 | 9.9 | ||||||
| Other Sales Volumes (Bcf) | — | 0.1 | 0.1 | 0.1 | 0.3 | 0.1 | ||||||
| LIQUIDS* | ||||||||||||
| NGLs Sales Volumes (Bcfe) | 16.2 | 13.2 | 12.4 | 11.2 | 53.0 | 12.8 | ||||||
| Oil and Condensate Sales Volumes (Bcfe) | 0.2 | 0.4 | 0.1 | 0.2 | 0.9 | 0.2 | ||||||
| TOTAL (Bcfe) | 141.9 | 134.5 | 134.0 | 140.4 | 550.8 | 146.9 | ||||||
| Average Daily Production (MMcfe) | 1,543.1 | 1,461.8 | 1,472.5 | 1,542.4 | 1,509.1 | 1,596.9 | ||||||
| * NGLs, Oil and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices. | ||||||||||||
| Q4 2024 ACTIVITY SUMMARY | TD | Frac | TIL | Average Lateral Length(1) | Rigs at Period End | |||||||
| SWPA | Marcellus | - | 9 | 6 | 18,825 | - | ||||||
| Utica | - | - | - | - | - | |||||||
| CPA | Marcellus | - | - | - | - | - | ||||||
| Utica | 1 | - | - | - | 1 | |||||||
| Total | 1 | 9 | 6 | 1 | ||||||||
| (1) Measured in lateral feet from perforation to perforation. | ||||||||||||
| HEDGE VOLUMES AND PRICING(1) | ||||||||||||
| --- | --- | --- | --- | --- | ||||||||
| 2025 | 2026 | 2027 | 2028 | |||||||||
| NYMEX Hedges | ||||||||||||
| Volumes (Bcf) | 341.9 | 314.0 | 149.7 | 6.9 | ||||||||
| Average Prices (/Mcf) | $3.33 | $3.47 | $4.18 | $4.25 | ||||||||
| Physical Fixed Price Sales and Index Hedges | ||||||||||||
| Volumes (Bcf) | 137.0 | 102.4 | 133.5 | - | ||||||||
| Average Prices (/Mcf) | $2.33 | $2.67 | $3.30 | - | ||||||||
| Total Volumes Hedged (Bcf)(2) | 478.9 | 416.4 | 283.2 | 6.9 | ||||||||
| NYMEX + Basis (fully-covered volumes)(3) | ||||||||||||
| Volumes (Bcf) | 475.6 | 416.4 | 283.2 | 6.9 | ||||||||
| Average Prices (/Mcf) | $2.58 | $2.67 | $3.28 | $3.64 | ||||||||
| NYMEX Hedges Exposed to Basis | ||||||||||||
| Volumes (Bcf) | 3.3 | - | - | - | ||||||||
| Average Prices (/Mcf) | $3.33 | - | - | - | ||||||||
| Total Volumes Hedged (Bcf)(2) | 478.9 | 416.4 | 283.2 | 6.9 | ||||||||
| Estimated Conversion Factor(4) | 1.070 | 1.073 | 1.067 | 1.063 | ||||||||
| (1) Hedge positions as of 1/15/2025. | ||||||||||||
| (2) Excludes basis hedges in excess of NYMEX hedges of 0.9 Bcf, 15.9 Bcf, 21.3 Bcf, 44.8 Bcf, and 17.2 Bcf for Q1 2025, 2026, 2027, 2028, and 2029, respectively. | ||||||||||||
| (3) Includes the impact of NYMEX and basis-only hedges as well as physical sales agreements. | ||||||||||||
| (4) To convert Bcf to TBtu, multiply by conversion factor; to convert /Mcf to /MMBtu, divide by conversion factor. |
All values are in US Dollars.
| HEDGING GAIN/LOSS PROJECTIONS | |||||||
|---|---|---|---|---|---|---|---|
| Q1 2025 | |||||||
| Hedged | Wtd. Avg. | Avg. | Forecasted | Wtd. Avg. | Avg. | Forecasted | |
| Volumes | Hedged | Forward | Gain/(Loss)(2) | Hedged | Forward | Gain/(Loss)(2) | |
| ($/MMBtu) | (000 MMBtu) | Price | Market(1) | ( in 000s) | Price | Market(1) | ($ in 000s) |
| NYMEX | 88,875 | $3.15 | $3.72 | (49,834) | $3.12 | $3.86 | ($272,379) |
| Index | 36,395 | $2.22 | $3.36 | (41,454) | $2.18 | $3.16 | ($142,065) |
| Basis: | |||||||
| Eastern Gas-South (DOM) | 35,845 | ($0.72) | ($0.44) | (10,085) | ($0.72) | ($0.79) | $10,411 |
| TCO Pool (TCO) | 1,800 | ($0.87) | ($0.28) | (1,054) | ($0.87) | ($0.60) | ($1,934) |
| Michcon (NMC) | 7,200 | ($0.24) | ($0.33) | 653 | ($0.24) | ($0.36) | $3,466 |
| TETCO M2 (BM2) | 28,350 | ($0.91) | ($0.33) | (16,214) | ($0.91) | ($0.76) | ($16,485) |
| Transco Zone 5 South (DKR) | 1,350 | $1.12 | $1.24 | (135) | $1.12 | $0.61 | $2,793 |
| Total Financial Basis Hedges | 74,545 | (26,835) | ($1,749) | ||||
| Total Projected Realized Loss | (118,123) | ($416,193) | |||||
| Note: Forward market prices, hedged volumes, and hedge prices are as of 1/15/2025. Anticipated hedging activity is not included in projections. | |||||||
| (1) January 2025 prices are settled. | |||||||
| (2) Forecasted Gain/(Loss) amounts are based on sum of current monthly hedge positions vs. strip. |
All values are in US Dollars.
| Actual Change in Derivatives | ||||||
|---|---|---|---|---|---|---|
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Realized Gain | $21 | $95 | $110 | $55 | $281 | $43 |
| Unrealized (Loss) Gain | ($304) | ($6) | ($96) | ($47) | ($453) | $533 |
| (Loss) Gain on Commodity Derivative Instruments | ($283) | $89 | $14 | $8 | ($172) | $576 |
| CONSOLIDATED STATEMENTS OF INCOME | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||
| Dollars in thousands, except per share data | ||||||
| Revenue and Other Operating Income: | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Natural Gas, NGL and Oil Revenue | $364,413 | $259,459 | $236,233 | $325,972 | $1,186,077 | $334,394 |
| (Loss) Gain on Commodity Derivative Instruments | (282,992) | 88,964 | 14,095 | 7,528 | (172,405) | 576,210 |
| Purchased Gas Revenue | 6,855 | 27,306 | 11,029 | 14,277 | 59,467 | 16,916 |
| Other Revenue and Operating Income | 48,301 | 48,484 | 60,086 | 36,776 | 193,647 | 41,245 |
| Total Revenue and Other Operating Income | 136,577 | 424,213 | 321,443 | 384,553 | 1,266,786 | 968,765 |
| Costs and Expenses: | ||||||
| Operating Expense | ||||||
| Lease Operating Expense | 17,848 | 17,253 | 17,819 | 17,726 | 70,646 | 17,194 |
| Transportation, Gathering and Compression | 97,586 | 96,274 | 91,709 | 96,651 | 382,220 | 100,146 |
| Production, Ad Valorem, and Other Fees | 6,646 | 6,646 | 6,638 | 7,624 | 27,554 | 4,755 |
| Depreciation, Depletion and Amortization | 128,336 | 121,227 | 117,541 | 118,650 | 485,754 | 112,827 |
| Exploration and Production Related Other Costs | 1,835 | 1,935 | 2,364 | 2,312 | 8,446 | 2,016 |
| Purchased Gas Costs | 6,699 | 26,594 | 10,371 | 13,584 | 57,248 | 16,089 |
| Selling, General, and Administrative Costs | 43,542 | 32,498 | 32,025 | 37,671 | 145,736 | 29,538 |
| Other Operating Expense | 20,576 | 16,462 | 21,077 | 24,633 | 82,748 | 17,368 |
| Total Operating Expense | 323,068 | 318,889 | 299,544 | 318,851 | 1,260,352 | 299,933 |
| Other Expense | ||||||
| Other Expense (Income) | 4,539 | (4,590) | (676) | (5,399) | (6,126) | 3,876 |
| (Gain) Loss on Assets Sales and Abandonments, net | (33,627) | (10,570) | (814) | 20,296 | (24,715) | (11,380) |
| (Gain) Loss on Debt Extinguishment | — | — | (2) | 7,045 | 7,043 | — |
| Interest Expense | 36,596 | 37,923 | 38,634 | 37,441 | 150,594 | 37,331 |
| Total Other Expense | 7,508 | 22,763 | 37,142 | 59,383 | 126,796 | 29,827 |
| Total Costs and Expenses | 330,576 | 341,652 | 336,686 | 378,234 | 1,387,148 | 329,760 |
| (Loss) Income Before Income Tax | (193,999) | 82,561 | (15,243) | 6,319 | (120,362) | 639,005 |
| Income Tax (Benefit) Expense | (49,375) | 17,021 | 3,018 | (532) | (29,868) | 125,020 |
| Net (Loss) Income | ($144,624) | $65,540 | ($18,261) | $6,851 | ($90,494) | $513,985 |
| (Loss) Earnings per Share | ||||||
| Basic | ($0.97) | $0.44 | ($0.12) | $0.04 | ($0.60) | $3.28 |
| Diluted | ($0.97) | $0.37 | ($0.12) | $0.04 | ($0.60) | $2.76 |
| Weighted-Average Shares Outstanding | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024^ | YTD-2024 | Q4-2023 |
| Weighted-Average Shares of Common Stock Outstanding | 148,946,949 | 150,342,177 | 152,608,500 | 153,364,652 | 151,306,438 | 156,812,941 |
| Effect of Diluted Shares*^ | — | 28,771,284 | — | 2,787,069 | — | 29,895,586 |
| Weighted-Average Diluted Shares of Common Stock Outstanding | 148,946,949 | 179,113,461 | 152,608,500 | 156,151,721 | 151,306,438 | 186,708,527 |
| *During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards and the potential share settlement impact related to CNX’s Convertible Notes are antidilutive. | ||||||
| ^The Convertible Notes were not included in the computation of diluted income per share in the three months ended March 31, 2024 as the effect of including these shares in the calculation would have been anti-dilutive (See Note 2 - Earnings Per Share in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of CNX’s quarterly report on Form 10-Q for the period ended March 31, 2024). | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| --- | --- | --- | --- | --- | --- | |
| (Unaudited) | ||||||
| Dollars in thousands | 31-Dec-24 | 30-Sep-24 | 30-Jun-24 | 31-Mar-24 | 31-Dec-23 | |
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and Cash Equivalents | $17,198 | $1,310 | $3,923 | $1,988 | $443 | |
| Restricted Cash | 37,875 | — | — | — | — | |
| Accounts and Notes Receivable: | ||||||
| Trade, net | 179,547 | 101,788 | 108,091 | 91,093 | 116,119 | |
| Other Receivables, net | 17,859 | 50,597 | 38,404 | 43,604 | 17,872 | |
| Supplies Inventories | 14,572 | 12,965 | 14,505 | 14,368 | 19,846 | |
| Derivative Instruments | 87,925 | 147,020 | 186,429 | 290,171 | 252,524 | |
| Prepaid Expenses | 15,659 | 19,259 | 17,195 | 19,218 | 14,984 | |
| Total Current Assets | 370,635 | 332,939 | 368,547 | 460,442 | 421,788 | |
| Property, Plant and Equipment: | ||||||
| Property, Plant and Equipment | 13,037,948 | 12,907,324 | 12,799,473 | 12,662,876 | 12,537,118 | |
| Less—Accumulated Depreciation, Depletion and Amortization | 5,653,837 | 5,533,957 | 5,415,933 | 5,301,316 | 5,194,485 | |
| Total Property, Plant and Equipment—Net | 7,384,111 | 7,373,367 | 7,383,540 | 7,361,560 | 7,342,633 | |
| Other Non-Current Assets: | ||||||
| Operating Lease Right-of-Use Assets | 98,713 | 103,692 | 112,414 | 125,821 | 139,466 | |
| Derivative Instruments | 160,183 | 228,883 | 241,384 | 223,941 | 280,530 | |
| Goodwill | 323,314 | 323,314 | 323,314 | 323,314 | 323,314 | |
| Other Intangible Assets | 63,885 | 65,524 | 67,162 | 68,800 | 70,438 | |
| Other Non-Current Assets | 111,062 | 110,330 | 106,593 | 92,764 | 48,488 | |
| Total Other Non-Current Assets | 757,157 | 831,743 | 850,867 | 834,640 | 862,236 | |
| TOTAL ASSETS | $8,511,903 | $8,538,049 | $8,602,954 | $8,656,642 | $8,626,657 | |
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts Payable | $123,249 | $120,125 | $126,192 | $163,016 | $147,361 | |
| Derivative Instruments | 354,621 | 185,795 | 156,541 | 117,400 | 61,102 | |
| Current Portion of Finance Lease Obligations | 4,236 | 2,576 | 2,534 | 1,897 | 1,862 | |
| Current Portion of Long-Term Debt | 327,766 | 327,236 | 326,710 | 326,187 | 325,668 | |
| Current Portion of Operating Lease Obligations | 51,474 | 49,033 | 51,329 | 51,986 | 53,791 | |
| Other Accrued Liabilities | 261,232 | 207,972 | 230,047 | 213,616 | 233,214 | |
| Total Current Liabilities | 1,122,578 | 892,737 | 893,353 | 874,102 | 822,998 | |
| Non-Current Liabilities: | ||||||
| Long-Term Debt | 1,838,234 | 1,957,655 | 1,955,433 | 1,942,508 | 1,888,706 | |
| Finance Lease Obligations | 21,040 | 10,270 | 10,710 | 5,419 | 5,500 | |
| Operating Lease Obligations | 49,519 | 57,493 | 64,777 | 77,162 | 89,531 | |
| Derivative Instruments | 429,533 | 369,569 | 451,743 | 475,589 | 526,554 | |
| Deferred Income Taxes | 696,136 | 745,735 | 728,297 | 724,643 | 729,454 | |
| Asset Retirement Obligations | 119,189 | 104,921 | 105,321 | 105,527 | 105,315 | |
| Other Non-Current Liabilities | 137,644 | 142,954 | 142,675 | 142,372 | 97,582 | |
| Total Non-Current Liabilities | 3,291,295 | 3,388,597 | 3,458,956 | 3,473,220 | 3,442,642 | |
| TOTAL LIABILITIES | 4,413,873 | 4,281,334 | 4,352,309 | 4,347,322 | 4,265,640 | |
| Stockholders' Equity: | ||||||
| Common Stock | 1,490 | 1,494 | 1,516 | 1,534 | 1,548 | |
| Capital in Excess of Par Value | 2,348,959 | 2,348,061 | 2,363,053 | 2,373,114 | 2,384,910 | |
| Preferred Stock | — | — | — | — | — | |
| Retained Earnings | 1,753,293 | 1,914,218 | 1,893,215 | 1,941,892 | 1,981,860 | |
| Accumulated Other Comprehensive Loss | (5,712) | (7,058) | (7,139) | (7,220) | (7,301) | |
| TOTAL STOCKHOLDERS' EQUITY | 4,098,030 | 4,256,715 | 4,250,645 | 4,309,320 | 4,361,017 | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $8,511,903 | $8,538,049 | $8,602,954 | $8,656,642 | $8,626,657 | |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| (Unaudited) | ||||||
| Dollars in thousands | ||||||
| Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 | |
| Cash Flows from Operating Activities: | ||||||
| Net (Loss) Income | ($144,624) | $65,540 | ($18,261) | $6,851 | ($90,494) | 513,985 |
| Depreciation, Depletion and Amortization | 128,336 | 121,227 | 117,541 | 118,650 | 485,754 | 112,827 |
| Amortization of Deferred Financing Costs | 2,623 | 2,612 | 3,711 | 2,399 | 11,345 | 2,332 |
| Stock-Based Compensation | 4,346 | 4,192 | 4,179 | 7,374 | 20,091 | 4,186 |
| (Gain) Loss on Asset Sales and Abandonments, net | (33,627) | (10,570) | (814) | 20,296 | (24,715) | (11,380) |
| (Gain) Loss on Debt Extinguishment | — | — | (2) | 7,045 | 7,043 | — |
| Loss (Gain) on Commodity Derivative Instruments | 282,992 | (88,964) | (14,095) | (7,528) | 172,405 | (576,210) |
| (Gain) Loss on Other Derivative Instruments | — | — | (112) | 1,211 | 1,099 | 1,231 |
| Net Cash Received in Settlement of Commodity Derivative Instruments | 73,592 | 87,955 | 115,799 | 30,593 | 307,939 | 61,003 |
| Deferred Income Taxes | (50,060) | 17,408 | 3,624 | (4,841) | (33,869) | 125,043 |
| Other | 344 | 494 | 457 | 50 | 1,345 | (1,273) |
| Changes in Operating Assets: | ||||||
| Accounts and Notes Receivable | (43,986) | (1,963) | (13,226) | (821) | (59,996) | (40,500) |
| Supplies Inventories | (1,606) | 1,539 | (137) | 5,478 | 5,274 | 161 |
| Prepaid Expenses | 3,600 | (2,064) | 2,023 | (4,234) | (675) | (893) |
| Changes in Other Assets | (748) | (789) | (180) | (45,367) | (47,084) | (192) |
| Changes in Operating Liabilities: | ||||||
| Accounts Payable | 454 | (2,864) | (24,850) | 23,066 | (4,194) | (54,107) |
| Accrued Interest | 16,710 | (18,010) | 17,488 | (14,603) | 1,585 | 16,770 |
| Other Operating Liabilities | 34,075 | (5,934) | (1,740) | (5,401) | 21,000 | 10,666 |
| Changes in Other Liabilities | (3,624) | 342 | 361 | 44,847 | 41,926 | (2,517) |
| Net Cash Provided by Operating Activities | 268,797 | 170,151 | 191,766 | 185,065 | 815,779 | 161,132 |
| Cash Flows from Investing Activities: | ||||||
| Capital Expenditures | (105,495) | (114,737) | (151,916) | (168,184) | (540,332) | (107,749) |
| Proceeds from Asset Sales | 36,582 | 8,141 | 7,487 | 8,524 | 60,734 | 8,090 |
| Investments in Equity Affiliates | (1,309) | (3,452) | (110) | — | (4,871) | — |
| Net Cash Used in Investing Activities | (70,222) | (110,048) | (144,539) | (159,660) | (484,469) | (99,659) |
| Cash Flows from Financing Activities: | ||||||
| Payments on Long-Term Notes | — | — | — | (356,504) | (356,504) | — |
| Proceeds from CNXM Revolving Credit Facility Borrowings | 71,700 | 70,750 | 50,600 | 72,200 | 265,250 | 118,725 |
| Repayments of CNXM Revolving Credit Facility Borrowings | (82,300) | (90,750) | (95,300) | (86,000) | (354,350) | (101,625) |
| Proceeds from CNX Revolving Credit Facility Borrowings | 194,800 | 306,000 | 292,300 | 341,400 | 1,134,500 | 402,050 |
| Repayments of CNX Revolving Credit Facility Borrowings | (304,600) | (284,750) | (235,300) | (318,450) | (1,143,100) | (375,000) |
| Proceeds from Issuance of CNX Senior Notes | — | — | — | 395,000 | 395,000 | — |
| Payments on Other Debt | (686) | (639) | (597) | (487) | (2,409) | (493) |
| Proceeds from Issuance of Common Stock | 1,481 | 170 | 929 | 109 | 2,689 | 106 |
| Shares Withheld for Taxes | (98) | (303) | (48) | (17,830) | (18,279) | (20) |
| Purchases of Common Stock | (25,005) | (62,996) | (44,381) | (51,821) | (184,203) | (113,426) |
| Debt Issuance and Financing Fees | (104) | (198) | (13,495) | (1,477) | (15,274) | — |
| Net Cash Used in Financing Activities | (144,812) | (62,716) | (45,292) | (23,860) | (276,680) | (69,683) |
| Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 53,763 | (2,613) | 1,935 | 1,545 | 54,630 | (8,210) |
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 1,310 | 3,923 | 1,988 | 443 | 443 | 8,653 |
| Cash, Cash Equivalents, and Restricted Cash at End of Period | $55,073 | $1,310 | $3,923 | $1,988 | $55,073 | $443 |
| MARKET MIX AND NATURAL GAS PRICE RECONCILIATION | ||||||
| --- | --- | --- | ||||
| 2025E | ||||||
| Gas Sold (%)(1) | Basis(2) | |||||
| Eastern Gas-South | 25% | ($0.79) | ||||
| ETNG Mainline | 3% | $0.28 | ||||
| TCO Pool | 23% | ($0.60) | ||||
| TETCO ELA & WLA | 4% | ($0.09) | ||||
| TETCO M3 | 5% | ($0.08) | ||||
| TETCO M2 | 22% | ($0.76) | ||||
| Michcon | 8% | ($0.36) | ||||
| Physical basis sales | 10% | ($0.06) | ||||
| Weighted Average Basis | 100% | ($0.54) | ||||
| NYMEX | $3.86 | |||||
| Weighted Average Basis (Not considering hedging) | ($0.54) | |||||
| Realized Price (per MMBtu) | $3.32 | |||||
| Conversion Factor (MMBtu/Mcf) | 1.070 | |||||
| Realized Price Before Financial Hedging (per Mcf) | $3.55 | |||||
| (1) Individual market percentages exclude physical basis sales, which are shown separately. | ||||||
| (2) Forward market basis prices as of 1/15/2025. | ||||||
| PRICE AND COST DATA (PER MCFE) - NON-GAAP | ||||||
| --- | --- | --- | --- | --- | --- | |
| Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 | ||
| Average Sales Price - Natural Gas | $1.73 | $1.60 | $2.17 | $1.98 | $2.16 | |
| Average Gain on Commodity Derivative Instruments - Cash Settlement | $0.78 | $0.91 | $0.42 | $0.57 | $0.32 | |
| Average Sales Price - Oil and Condensate* | $10.31 | $11.00 | $10.68 | $10.26 | $10.77 | |
| Average Sales Price - NGLs* | $3.50 | $3.28 | $3.99 | $3.60 | $3.33 | |
| Average Sales Price of Natural Gas, NGL and Oil, including Cash Settlement | $2.63 | $2.58 | $2.71 | $2.66 | $2.57 | |
| Lease Operating Expense (LOE) | $0.13 | $0.13 | $0.13 | $0.13 | $0.12 | |
| Production, Ad Valorem, and Other Fees | $0.05 | $0.05 | $0.06 | $0.05 | $0.03 | |
| Transportation, Gathering and Compression | $0.72 | $0.68 | $0.69 | $0.69 | $0.68 | |
| Depreciation, Depletion and Amortization (DD&A) | $0.86 | $0.85 | $0.81 | $0.85 | $0.75 | |
| Total Natural Gas, NGL and Oil Production Costs | $1.76 | $1.71 | $1.69 | $1.72 | $1.58 | |
| Total Natural Gas, NGL and Oil Production Cash Costs, before DD&A | $0.90 | $0.86 | $0.88 | $0.87 | $0.83 | |
| Natural Gas, NGL and Oil Production Cash Margin, before DD&A | $1.73 | $1.72 | $1.83 | $1.79 | $1.74 | |
| Fully Burdened Cash Costs, before DD&A(1) | $1.11 | $1.03 | $1.20 | $1.13 | $1.09 | |
| Fully Burdened Cash Margin, before DD&A | $1.52 | $1.55 | $1.51 | $1.53 | $1.48 | |
| Note: "Total Natural Gas, NGL and Oil Production Costs" excludes Selling, General, and Administration and Other Operating Expenses. | ||||||
| *NGLs, Oil, and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices. | ||||||
| (1) Fully burdened cash costs include production cash costs, selling, general and administrative (SG&A) cash costs, other operating cash expense, other cash expense (income), other revenue and operating income, and cash interest expense. Q4 2024, Q3 2024, Q2, 2024, Q1 2024, YTD 2024 and Q4 2023 total fully burdened cash costs exclude a (gain)/loss on asset sales of (0.24) per Mcfe, (0.08) per Mcfe, 0.01 per Mcfe, 0.15 per Mcfe, 0.04 per Mcfe and 0.08 per Mcfe, respectively. Q4 2024, Q3 2024, Q2 2024, Q1 2024, YTD 2024 and Q4 2023 exclude unrealized losses on interest rate swaps and noncash amortization of 0.02 per Mcfe, 0.02 per Mcfe,0.03 per Mcfe, 0.03 per Mcfe, 0.02 per Mcfe and 0.02 per Mcfe, respectively. Q4 2024, Q3 2024, Q2 2024, Q1 2024, YTD 2024 and Q4 2023 exclude loss on debt extinguishment and inventory adjustments of 0.00 per Mcfe, 0.01 per Mcfe, 0.00 per Mcfe, 0.06 per Mcfe, 0.01 per Mcfe, and 0.00 per Mcfe, respectively. | ||||||
| Natural Gas Price Reconciliation | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 | |
| NYMEX Natural Gas (/MMBtu) | $2.16 | $1.89 | $2.24 | $2.27 | $2.88 | |
| Average Differential | (0.56) | (0.41) | (0.25) | (0.43) | (0.89) | |
| BTU Conversion (MMBtu/Mcf)* | 0.13 | 0.12 | 0.18 | 0.14 | 0.17 | |
| Gain on Natural Gas Commodity Derivative Instruments-Cash Settlement | 0.78 | 0.91 | 0.42 | 0.57 | 0.31 | |
| Realized Natural Gas Price per Mcf | $2.51 | $2.51 | $2.59 | $2.55 | $2.47 | |
| *Conversion factor | 1.09 | 1.08 | 1.09 | 1.08 | 1.09 |
All values are in US Dollars.
| GUIDANCE | |||||
|---|---|---|---|---|---|
| ( in millions) | Proforma(1) 2025E | ||||
| High | High | Low | High | ||
| Production Volumes (Bcfe) | - | 555 | 65 | 605 | 620 |
| % Liquids | ~7% | ~8% | |||
| % of Natural Gas Hedged | 85% | ||||
| Prices on Open Volumes(2) | |||||
| Natural Gas NYMEX (/MMBtu) | 3.86 | ||||
| Natural Gas Differential (/MMBtu) | (0.54) | ||||
| NGL Realized Price (/Bbl) | ~21.75 | ||||
| Adjusted EBITDAX(3) | - | 1,130 | $145 | 1,225 | $1,275 |
| Capital Expenditures | |||||
| Drilling & Completions (D&C) | ‘- | 315 | 300 | $325 | |
| Non-D&C | - | 150 | 145 | $165 | |
| Discretionary Capital | - | 10 | 5 | $10 | |
| Total Capital Expenditures | - | 475 | 450 | $500 | |
| Environmental Attributes Sales Free Cash Flow (FCF) Impact(3) | ~75 | ||||
| Total Free Cash Flow (FCF)(3)(4)(6) | ~575 | ||||
| FCF Per Share(3)(4)(5) | ~3.85 | ||||
| (1) Apex Energy acquisition closed on 1/27/2025. Apex Energy guidance reflects 11 months of consolidated activity. | |||||
| (2) Forward market prices for 2025 guidance as of 1/15/2025. | |||||
| (3) Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions. | |||||
| (4) Total FCF guidance includes approximately 30 million in expected asset sales in 2025. | |||||
| (5) Guidance for 2025 FCF per share based on shares outstanding of 149,247,242, as of 1/8/2025. | |||||
| (6) Excludes 505 million Apex Energy acquisition. |
All values are in US Dollars.
| 2025E ACTIVITY SUMMARY | TIL | Average Lateral Length(1) | ||||
|---|---|---|---|---|---|---|
| SWPA Central | Marcellus | 13 | 12,800 | |||
| CPA | Marcellus | 13 | 15,600 | |||
| Utica | 8 | 12,500 | ||||
| Total | 34 | - | ||||
| (1) Measured in lateral feet from perforation to perforation. |
Non-GAAP Measures (Definitions, Purpose, and Reconciliations)
CNX's management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful for investors in analyzing the company. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating CNX because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.
Definitions: EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below. Although EBIT, EBITDAX, and adjusted EBITDAX are not measures of performance calculated in accordance with generally accepted accounting principles, management believes that they are useful to an investor in evaluating CNX Resources because they are widely used to evaluate a company's operating performance. We exclude stock-based compensation from adjusted EBITDAX because we do not believe it accurately reflects the actual operating expense incurred during the relevant period and may vary widely from period to period irrespective of operating results. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT, EBITDAX or adjusted EBITDAX identically, the presentation here may not be comparable to similarly titled measures of other companies. Sales of natural gas, NGL and oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Natural gas, NGL and oil production costs excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations. Adjusted Net Income (Loss) is defined as net income after adjusting for the discrete items listed below as well as the tax effectiveness. Operating Margins are defined as adjusted EBIT divided by Total Revenue after adjusting for unrealized (gain) loss on commodity derivative instruments. Adjusted Trailing-Twelve-Months (TTM) EBITDAX is defined as EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below. Cash Operating Margins are defined as adjusted EBITDA divided by total Revenue after adjusting for unrealized (gain) loss on commodity derivative instruments. Net Debt is defined as total long-term debt minus cash, cash equivalents, and restricted cash. Adjusted Net Debt is defined as total long-term debt plus the historical impact of recent accounting pronouncement, minus cash, cash equivalents, and restricted cash. Free Cash Flow (FCF) is defined as net cash provided by operating activities minus capital expenditures plus proceeds from asset sales and minus investments in equity affiliates.
Reconciliations of EBIT, EBITDAX, adjusted EBITDAX, adjusted EBIT, adjusted EBITDA, sales of natural gas, NGL and oil, including cash settlements, natural gas, NGL and oil production costs, adjusted net income, operating margins, cash operating margins, net debt, adjusted net debt, adjusted TTM EBITDAX and FCF to the most directly comparable GAAP financial measures are as follows:
| Non-GAAP Measures | ||||||
|---|---|---|---|---|---|---|
| Sales of Natural Gas, NGL and Oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Sales of Natural Gas, NGL and Oil, including cash settlements is a non-GAAP measure that excludes purchased gas revenue and other revenue and operating income, which are not directly related to CNX’s natural gas producing activities. Natural Gas, NGL and Oil Production Costs is a non-GAAP measure that excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations (See Note 21 - Segment Information of the Notes to the Audited Consolidated Financial Statements in Item 8 of CNX's 2023 Annual Report on Form 10-K as filed with the SEC on February 8, 2024). These expenses include, but are not limited to, interest expense and other corporate expenses such as selling, general and administrative costs in the current periods presented. | ||||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Total Revenue and Other Operating Income | $138 | $424 | $321 | $384 | $1,267 | $969 |
| (Deduct) Add: | ||||||
| Purchased Gas Revenue | (7) | (27) | (11) | (14) | (59) | (18) |
| Unrealized Loss (Gain) on Commodity Derivative Instruments | 304 | 6 | 96 | 47 | 453 | (533) |
| Other Revenue and Operating Income | (49) | (49) | (60) | (36) | (194) | (42) |
| Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | $386 | $354 | $346 | $381 | $1,467 | $376 |
| Total Operating Expense | $323 | $319 | $299 | $319 | $1,260 | $300 |
| (Deduct): | ||||||
| Depreciation, Depletion and Amortization (DD&A) - Corporate | (3) | (4) | (4) | (5) | (16) | (3) |
| Exploration and Production Related Other Costs | (2) | (2) | (2) | (2) | (8) | (2) |
| Purchased Gas Costs | (7) | (27) | (10) | (13) | (57) | (17) |
| Selling, General and Administrative Costs | (43) | (33) | (32) | (38) | (146) | (29) |
| Other Operating Expense | (22) | (16) | (21) | (24) | (83) | (18) |
| Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1 | $246 | $237 | $230 | $237 | $950 | $231 |
1 Natural Gas, NGL and Oil production costs consists primarily of lease operating expense, production ad valorem and other fees, transportation, gathering and compression and production related depreciation, depletion and amortization.
| Non-GAAP Measures | ||||||
|---|---|---|---|---|---|---|
| EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below. | ||||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Net (Loss) Income | ($145) | $66 | ($18) | $7 | ($90) | $514 |
| Interest Expense | 37 | 37 | 39 | 37 | 150 | 37 |
| Interest Income | (2) | — | — | — | (2) | — |
| Income Tax (Benefit) Expense | (50) | 17 | 3 | — | (30) | 125 |
| (Loss) Earnings Before Interest & Taxes (EBIT) | (160) | 120 | 24 | 44 | 28 | 676 |
| Depreciation, Depletion & Amortization | 129 | 121 | 117 | 119 | 486 | 113 |
| Exploration Expense | 2 | 2 | 2 | 2 | 8 | 2 |
| (Loss) Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX) | ($29) | $243 | $143 | $165 | $522 | $791 |
| Adjustments: | ||||||
| Unrealized Loss (Gain) on Commodity Derivative Instruments | 304 | 6 | 96 | 47 | 453 | (533) |
| Loss on Non-Core Asset Sales | — | — | — | 26 | 26 | — |
| Stock-Based Compensation | 5 | 4 | 4 | 7 | 20 | 4 |
| Loss on Debt Extinguishment | — | — | — | 7 | 7 | — |
| Virginia Flood Expense | — | — | (1) | — | (1) | — |
| Total Pre-tax Adjustments | 309 | 10 | 99 | 87 | 505 | (529) |
| Adjusted EBITDAX | $280 | $253 | $242 | $252 | $1,027 | $262 |
| Adjusted Net Income is defined as net income after adjusting for the discrete items listed below as well as the related tax effect. | ||||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Net (Loss) Income from EBITDAX Reconciliation | ($145) | $66 | ($18) | $7 | ($90) | $514 |
| Adjustments: | ||||||
| Total Pre-tax Adjustments from EBITDAX Reconciliation | 309 | 10 | 99 | 87 | 505 | (529) |
| Tax Effect of Adjustments | (79) | (3) | (26) | (23) | (131) | 139 |
| Adjusted Net Income | $85 | $73 | $55 | $71 | $284 | $124 |
| Non-GAAP Measures | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Operating Margin: Adjusted EBIT divided by Total Revenue and Other Operating Income after adjusting for unrealized (gain) loss on commodity derivative instruments. | ||||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Total Revenue and Other Operating Income | 138 | 424 | 321 | 384 | 1,267 | 969 |
| Net (Loss) Income | (145) | 66 | (18) | 7 | (90) | 514 |
| Interest Expense | 37 | 37 | 39 | 37 | 150 | 37 |
| Interest Income | (2) | — | — | — | (2) | — |
| Income Tax (Benefit) Expense | (50) | 17 | 3 | — | (30) | 125 |
| (Loss) Earnings Before Interest & Taxes (EBIT) | (160) | 120 | 24 | 44 | 28 | 676 |
| Depreciation, Depletion & Amortization | 129 | 121 | 117 | 119 | 486 | 113 |
| (Loss) Earnings Before Interest, Taxes, DD&A (EBITDA) | (31) | 241 | 141 | 163 | 514 | 789 |
| Adjustments: | ||||||
| Unrealized Loss (Gain) on Commodity Derivative Instruments | 304 | 6 | 96 | 47 | 453 | (533) |
| Total Adjustments | 304 | 6 | 96 | 47 | 453 | (533) |
| Total Revenue and Other Operating Income Minus Unrealized Loss (Gain) on Commodity Derivative Instruments | 442 | 430 | 417 | 431 | 1,720 | 436 |
| Adjusted EBIT | 144 | 126 | 120 | 91 | 481 | 143 |
| Operating Margin | 33 | 29 | 29 | 21 | 28 | 33 |
All values are in US Dollars.
| Non-GAAP Measures | ||||||
|---|---|---|---|---|---|---|
| Cash Operating Margin: Adjusted EBITDA divided by Total Revenue and Other Operating Income after adjusting for unrealized (gain) loss on commodity derivative instruments, stock based compensation and the other discrete items listed below. | ||||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 | Q4-2023 |
| Total Revenue and Other Operating Income | 138 | 424 | 321 | 384 | 1,267 | 969 |
| Net (Loss) Income | (145) | 66 | (18) | 7 | (90) | 514 |
| Interest Expense | 37 | 37 | 39 | 37 | 150 | 37 |
| Interest Income | (2) | — | — | — | (2) | — |
| Income Tax (Benefit) Expense | (50) | 17 | 3 | — | (30) | 125 |
| (Loss) Earnings Before Interest & Taxes (EBIT) | (160) | 120 | 24 | 44 | 28 | 676 |
| Depreciation, Depletion & Amortization | 129 | 121 | 117 | 119 | 486 | 113 |
| (Loss) Earnings Before Interest, Taxes, DD&A (EBITDA) | (31) | 241 | 141 | 163 | 514 | 789 |
| Adjustments: | ||||||
| Unrealized Loss (Gain) on Commodity Derivative Instruments | 304 | 6 | 96 | 47 | 453 | (533) |
| Loss on Non-Core Asset Sale | — | — | — | 26 | 26 | — |
| Stock-Based Compensation | 5 | 4 | 4 | 7 | 20 | 4 |
| Virginia Flood Expense | — | — | (1) | — | (1) | — |
| Loss on Debt Extinguishment | — | — | — | 7 | 7 | — |
| Total Adjustments | 309 | 10 | 99 | 87 | 505 | (529) |
| Total Revenue and Other Operating Income Minus Unrealized Loss (Gain) on Commodity Derivative Instruments | 442 | 430 | 417 | 431 | 1,720 | 436 |
| Adjusted EBITDA | 278 | 251 | 240 | 250 | 1,019 | 260 |
| Cash Operating Margin | 63 | 58 | 58 | 58 | 59 | 60 |
All values are in US Dollars.
| Non-GAAP Measures | ||||||||
|---|---|---|---|---|---|---|---|---|
| Management uses net debt to determine the company's outstanding debt obligations that would not be readily satisfied by its cash, cash equivalents, and restricted cash on hand. Management believes that using net debt is useful to investors in determining the company's leverage ratio since the company could choose to use its cash, cash equivalents, and restricted cash to retire debt. | ||||||||
| Net Debt: Total long-term debt minus cash, cash equivalents, and restricted cash. | ||||||||
| Adjusted Net Debt : Total long-term debt, plus the historical impact of recent accounting pronouncement, minus cash, cash equivalents, and restricted cash. | ||||||||
| (Dollars in millions) | ||||||||
| Net Debt | 30-Sep-24 | 30-Jun-24 | 31-Mar-24 | 31-Dec-23 | 31-Dec-22 | 31-Dec-21 | 31-Dec-20 | 30-Sep-20 |
| Total Long-Term Debt (GAAP)(1) | $2,285 | $2,282 | $2,269 | $2,214 | $2,206 | $2,214 | $2,424 | $2,600 |
| Less: Cash, Cash Equivalents, and Restricted Cash | 1 | 4 | 2 | — | 21 | 4 | 22 | 156 |
| Net Debt | $2,284 | $2,278 | $2,267 | $2,214 | $2,185 | $2,210 | $2,402 | $2,444 |
| (1) Includes current portion | ||||||||
| (Dollars in millions) | ||||||||
| Adjusted Net Debt | 30-Sep-24 | 30-Jun-24 | 31-Mar-24 | 31-Dec-23 | 31-Dec-22 | 31-Dec-21 | 31-Dec-20 | 30-Sep-20 |
| Total Long-Term Debt (GAAP)(1) | $2,285 | $2,282 | $2,269 | $2,214 | $2,206 | $2,214 | $2,424 | $2,600 |
| Plus: Impact of Recent Accounting Pronouncement(2) | — | — | — | — | — | 82 | 98 | 101 |
| Less: Cash, Cash Equivalents, and Restricted Cash | 1 | 4 | 2 | — | 21 | 4 | 22 | 156 |
| Adjusted Net Debt | $2,284 | $2,278 | $2,267 | $2,214 | $2,185 | $2,292 | $2,500 | $2,545 |
| (1) Includes current portion. | ||||||||
| (2) On January 1, 2022, the Company adopted Accounting Standards Update (ASU) 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity and upon adoption long-term debt increased by 82MM (See Note 10 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of CNX’s September 30, 2023 Form 10-Q for additional information). As this adjustment was recorded on a prospective basis, Management believes that presenting investors with the net debt on a historical basis would be beneficial. |
All values are in US Dollars.
| Adjusted TTM EBITDAX: EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below. | |||||
|---|---|---|---|---|---|
| Three Months Ended | Twelve Months Ended | ||||
| (Dollars in millions) | 31-Mar-24 | 30-Jun-24 | 30-Sep-24 | 31-Dec-24 | 31-Dec-24 |
| Net Income (Loss) | $7 | ($18) | $66 | ($145) | ($90) |
| Interest Expense | 37 | 39 | 37 | 37 | 150 |
| Interest Income | — | — | — | (2) | (2) |
| Income Tax Expense (Benefit) | — | 3 | 17 | (50) | (30) |
| Earnings (Loss) Before Interest & Taxes (EBIT) | 44 | 24 | 120 | (160) | 28 |
| Depreciation, Depletion & Amortization | 119 | 117 | 121 | 129 | 486 |
| Exploration Expense | 2 | 2 | 2 | 2 | 8 |
| Earnings (Loss) Before Interest, Taxes, DD&A, and Exploration (EBITDAX) | 165 | 143 | 243 | (29) | 522 |
| Adjustments: | |||||
| Unrealized Loss on Commodity Derivative Instruments | 47 | 96 | 6 | 304 | 453 |
| Loss on Non-Core Asset Sales | 26 | — | — | — | 26 |
| Stock Based Compensation | 7 | 4 | 4 | 5 | 20 |
| Loss on Debt Extinguishment | 7 | — | — | — | 7 |
| Virginia Flood Expense | — | (1) | — | — | (1) |
| Total Pre-tax Adjustments | 87 | 99 | 10 | 309 | 505 |
| Adjusted EBITDAX TTM | $252 | $242 | $253 | $280 | $1,027 |
| Non-GAAP Measures | |||||
| --- | --- | --- | --- | --- | --- |
| The Company's management believes that the following measures provide useful information to external users of the Company's consolidated financial statements, such as industry analysts, lenders and ratings agencies. Free cash flow should not be considered as alternatives to net cash provided by operating activities or any other measure of liquidity presented in accordance with GAAP. | |||||
| Free Cash Flow (FCF): Net cash provided by operating activities minus capital expenditures plus proceeds from asset sales and minus investments in equity affiliates. | |||||
| 2024 Free Cash Flow | |||||
| (Dollars in millions) | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | YTD-2024 |
| Net Cash Provided by Operating Activities | $269 | $170 | $192 | $185 | $816 |
| Capital Expenditures | (105) | (115) | (152) | (168) | (540) |
| Proceeds from Asset Sales | 37 | 8 | 7 | 8 | 60 |
| Investments in Equity Affiliates | (2) | (3) | — | — | (5) |
| Free Cash Flow | $199 | $60 | $47 | $25 | $331 |
| 2023 Free Cash Flow | |||||
| (Dollars in millions) | Q4-2023 | Q3-2023 | Q2-2023 | Q1-2023 | YTD-2023 |
| Net Cash Provided by Operating Activities | $161 | $206 | $199 | $248 | $814 |
| Capital Expenditures | (107) | (206) | (196) | (170) | (679) |
| Proceeds from Asset Sales | 8 | 19 | 132 | 11 | 170 |
| Free Cash Flow | $62 | $19 | $135 | $89 | $305 |
| 2022 Free Cash Flow | |||||
| (Dollars in millions) | Q4-2022 | Q3-2022 | Q2-2022 | Q1-2022 | YTD-2022 |
| Net Cash Provided by Operating Activities | $442 | $265 | $192 | $336 | $1,235 |
| Capital Expenditures | (173) | (134) | (137) | (122) | (566) |
| Proceeds from Asset Sales | 7 | 4 | 7 | 20 | 38 |
| Free Cash Flow | $276 | $135 | $62 | $234 | $707 |
| 2021 Free Cash Flow | |||||
| (Dollars in millions) | Q4-2021 | Q3-2021 | Q2-2021 | Q1-2021 | YTD-2021 |
| Net Cash Provided by Operating Activities | $254 | $215 | $239 | $219 | $927 |
| Capital Expenditures | (117) | (97) | (129) | (123) | (466) |
| Proceeds from Asset Sales | 21 | 12 | 7 | 5 | 45 |
| Free Cash Flow | $158 | $130 | $117 | $101 | $506 |
| 2020 Free Cash Flow | |||||
| (Dollars in millions) | Q4-2020 | Q3-2020 | Q2-2020 | Q1-2020 | YTD-2020 |
| Net Cash Provided by Operating Activities | $161 | $223 | $144 | $267 | $795 |
| Capital Expenditures | (92) | (108) | (135) | (152) | (487) |
| Proceeds from Asset Sales | 16 | 6 | 12 | 14 | 48 |
| Free Cash Flow | $85 | $121 | $21 | $129 | $356 |
Risk Factors
This presentation, including the oral statements made in connection herewith, contains forward-looking statements estimates and projections within the meaning of the federal securities laws. Statements that are not historical are forward-looking and may include our operational and strategic plans; estimates of gas reserves and resources; projected timing and rates of return of future investments; and projections and estimates of future production revenues, income and capital spending. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements estimates and projections. Investors should not place undue reliance on forward-looking statements as a prediction of future actual results. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements, and we caution you not to rely on them unduly.
Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions “Cautionary Statement Regarding Forward-looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC), as supplemented by our quarterly reports on Form 10-Q filed in 2024, and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; local, regional and national economic conditions and the impact they may have on our customers; events beyond our control, including a global or domestic health crisis or global instability; our operations and national and global economic conditions, generally; conditions in the oil and gas industry; the financial condition of our customers; any nonperformance by customers of their contractual obligations; changes in customer, employee or supplier relationships; ability to quality for environmental attribute credits and the volatility of environmental attribute markets; and changes in safety, health, environmental and other regulations.
18