CNX to acquire natural gas upstream, midstream business of Apex for $505M

CNX Resources (CNX) announced it has entered into a definitive agreement to acquire the natural gas upstream and associated midstream business of Apex Energy II, a portfolio company of funds managed by Carnelian Energy Capital, in the Appalachian Basin for total cash consideration of approximately $505M, subject to certain adjustments including an effective date of October 1. Completion of the transaction, which is subject to the satisfaction of customary closing conditions, is expected to occur in the first quarter of 2025. The acquisition is expected to be immediately accretive to CNX’s free cash flow per share. Total cash consideration for the acquisition is approximately $505M and will be funded with CNX’s secured credit facility. In May, CNX amended its secured credit facilities, extending the maturities to May 2029 and increasing the total elected commitment amounts to $2B. As of September 30, CNX had approximately $1.8B of available borrowing capacity under the secured credit facilities. Post acquisition, the company expects leverage ratios to be minimally impacted, preserving its significant capital allocation flexibility.