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CNX Resources (CNX)
NYSE:CNX
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CNX Resources
(NYSE:CNX)48Neutral
Positive Factors
Capital Efficiency
CNX Resources has demonstrated attractive capital efficiency with peer-leading well productivity and an attractive cost structure.
Financial Performance
CNX delivered an upbeat 4Q underscored by a volume and free cash flow beat helped by one-time items.
Negative Factors
Valuation Concerns
The company's shale exploration and production business is considered fully valued, limiting growth potential.
CNX Resources (CNX) vs. S&P 500 (SPY)
Market Cap
$4.30B
Dividend YieldN/A
Average Volume (3M)3.31M
Price to Earnings (P/E)9.0
Beta (1Y)0.90
Revenue Growth-4.26%
EPS Growth-105.72%
CountryUS
Employees458
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)-0.67
Shares Outstanding148,842,390
10 Day Avg. Volume2,856,944
30 Day Avg. Volume3,313,375
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.72
Price to Cash Flow (P/CF)4.00
P/FCF Ratio3.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.90Price Target Upside-0.10% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering11
CNX Resources Business Overview & Revenue Model
Company DescriptionCNX Resources Corporation (CNX) is a leading independent natural gas exploration and production company primarily focused on the Appalachian Basin. The company is engaged in the development, production, and sale of natural gas, with a strong emphasis on the Marcellus and Utica shale formations. CNX is committed to operational excellence, innovative technologies, and sustainable practices to deliver reliable energy solutions.
How the Company Makes MoneyCNX Resources makes money by exploring, producing, and selling natural gas. The company's primary revenue stream comes from the sale of natural gas produced from its assets in the Appalachian Basin. CNX employs advanced drilling and completion techniques to maximize extraction efficiency and reduce costs. In addition to selling natural gas, the company may engage in hedging activities to manage commodity price risks. CNX also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. Their focus on cost management and technological innovation ensures competitive positioning in the energy market.
CNX Resources Financial Statement Overview
Summary
CNX Resources faces profitability challenges with declining revenue and consistent net losses impacting margins. While the balance sheet shows a strong equity base, high debt levels pose a risk. Cash flow management reflects operational strengths but is burdened by heavy capital expenditures. Stability and growth require addressing profitability and leverage.Income Statement
CNX Resources shows inconsistent revenue performance, with recent declines. The gross profit margin is high at 100% for 2024, but net profit margins have been negative due to significant net losses in recent years. EBIT and EBITDA margins have deteriorated, reflecting challenges in maintaining operational efficiency and profitability.45
Neutral
Balance Sheet
The company has maintained a relatively stable equity position but faces high debt levels, evidenced by a debt-to-equity ratio of approximately 1.11 in 2024. The equity ratio remains strong, indicating a solid equity base, but the return on equity is impacted by net losses, suggesting challenges in generating returns for shareholders.55
Neutral
Cash Flow
Cash flow from operations has been positive, but free cash flow has been negative in recent years due to high capital expenditures. The operating cash flow to net income ratio is positive, suggesting operational cash generation, but the free cash flow to net income ratio is concerning due to substantial negative free cash flow.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.44B | 1.46B | 3.92B | 2.39B | 1.08B | Gross Profit |
| 415.77M | 475.50M | 2.80B | 1.36B | 131.99M | EBIT |
| 193.65M | 311.19M | 2.59B | 1.14B | -101.44M | EBITDA |
| 515.99M | 2.80B | 376.96M | 29.76M | 81.80M | Net Income Common Stockholders |
| -90.49M | 1.72B | -142.08M | -498.64M | -428.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 17.20M | 443.00K | 21.32M | 3.56M | 15.62M | Total Assets |
| 8.51B | 8.63B | 8.52B | 8.10B | 8.04B | Total Debt |
| 454.04M | 2.37B | 2.39B | 2.27B | 2.54B | Net Debt |
| 454.04M | 2.36B | 2.37B | 2.27B | 2.52B | Total Liabilities |
| 4.41B | 4.27B | 5.57B | 4.40B | 3.62B | Stockholders Equity |
| 4.10B | 4.36B | 2.95B | 3.70B | 4.42B |
| Cash Flow | Free Cash Flow | |||
| 275.45M | 135.18M | 669.26M | 460.50M | 307.78M | Operating Cash Flow |
| 815.78M | 814.59M | 1.24B | 926.36M | 795.07M | Investing Cash Flow |
| -484.47M | -509.38M | -528.29M | -420.61M | -438.97M | Financing Cash Flow |
| -276.68M | -326.09M | -688.96M | -523.78M | -350.79M |
CNX Resources Technical Analysis
Positive
29.93
Price Trends
30.95
Negative
34.09
Negative
30.37
Negative
Market Momentum
-0.35
Negative
50.33
Neutral
36.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNX, the sentiment is Positive. The current price of 29.93 is above the 20-day moving average (MA) of 29.65, below the 50-day MA of 30.95, and below the 200-day MA of 30.37, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 36.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNX.
CNX Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $29.87B | 111.56 | 1.12% | 1.29% | 3.00% | -90.88% | |
77 Outperform | $22.33B | 7.55 | 19.94% | 4.21% | 3.00% | -21.63% | |
73 Outperform | $11.36B | 202.33 | 0.81% | ― | -4.22% | -77.20% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
56 Neutral | $8.96B | 34.00 | 6.77% | 0.86% | -7.57% | -69.25% | |
48 Neutral | $4.30B | 9.01 | -2.21% | ― | -4.26% | -105.72% |
* Energy Sector Average
Performance Comparison
CNX
CNX Resources
29.93
8.76
41.38%
DVN
Devon Energy
34.25
-9.66
-22.00%
EQT
EQT
50.00
13.01
35.17%
RRC
Range Resources
37.86
5.40
16.64%
AR
Antero Resources
36.52
9.65
35.91%
CNX Resources Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 7.58% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balance of positive developments in cash flow and budget efficiency, alongside challenges with regulatory clarity and future production levels. The recognition of coal mine methane is a positive step, but uncertainties in regulations and market conditions pose challenges.Highlights
Strong New Tech Cash Flow
Fourth quarter of 2024 New Tech saw robust free cash flow at $30 million, with continued focus on monetization and expansion of environmental attributes.
Efficient 2025 Budget and Low Decline Rate
2025 budget is efficient, benefiting from DUCs on Apex assets, maintaining a run rate sub-500, driven by Utica CPA development and a low decline PDP base.
Coal Mine Methane Recognition
Federal recognition of coal mine methane (CMM) as a low carbon intensity feedstock for hydrogen production under 45V, validating CMM's potential across sectors.
Lowlights
Regulatory Uncertainty
Restrictions in 45V rules are inconsistent with scientific assessments, requiring clarity to make necessary investment decisions for hydrogen economy scaling.
Delayed Clarity on New Administration's Stance
Uncertainty remains regarding the new administration's position on coal mine methane abatement and related incentives such as 45Q.
Potential Decline in Apex Volumes
Expectation of some decline in Apex volumes in the second half of 2025, contingent on gas market conditions and capital allocation decisions.
Company Guidance
During the CNX Resources Fourth Quarter 2024 Q&A Conference Call, the company provided insights into its guidance and outlook. The discussion covered various aspects, including the potential of coal mine methane (CMM) under the 45V federal recognition, which recognizes CMM as a low carbon intensity feedstock for hydrogen production. However, CNX highlighted the need for clearer regulatory guidance to make investment decisions in this area. On the E&P side, CNX plans to maintain flat production levels in 2024, with capital expenditure heavily weighted towards the first half of the year, and potential for increased activity depending on market conditions. The anticipated capital efficiency target remains sub-$500 million. The New Technologies segment demonstrated strong free cash flow of $30 million for Q4, though a slight decrease is expected in 2025. Overall, the company emphasized flexibility in its capital allocation strategy, adapting to market pricing and potential regulatory changes.CNX Resources Corporate Events
Private Placements and FinancingM&A Transactions
CNX Resources Completes $200M Senior Notes Offering
Neutral
Jan 21, 2025
On January 21, 2025, CNX Resources Corporation announced the completion of a $200 million private offering of 7.250% senior notes due 2032, intended to fund general corporate purposes and transaction costs for a pending acquisition. The offering highlights CNX’s strategic financial management, with the new notes treated as a single class with previously issued notes, and covenants in place to manage company and guarantor indebtedness.
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
CNX Resources Announces $200M Senior Notes Offering
Positive
Jan 14, 2025
On January 13, 2025, CNX Resources Corporation announced a private offering of $200 million in senior notes due 2032, as part of a broader strategy to finance its acquisition of Apex Energy and reduce borrowings. The offering is not contingent on the acquisition’s completion, and the net proceeds will fund general corporate purposes, highlighting CNX’s operational and financial strategies to expand its asset base while maintaining financial flexibility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.