CNX Resources (CNX) Q1 2025 earnings summary

Executive summary

• Generated $100 million of Q1 free cash flow, extending the positive-FCF streak to 21 consecutive quarters; cumulative FCF since Q1 2020 was $2.3 billion.

• Reported a $198 million net loss, versus $7 million net income in Q1 2024, driven by a $418 million unrealized loss on commodity derivatives.

• Closed the $518 million Apex Energy II acquisition, expanding Shale segment assets and undeveloped leasehold in central Pennsylvania.

• Total sales volumes rose 7.4 Bcfe year over year to 147.8 Bcfe, primarily from the Apex acquisition and new wells.

Financial highlights

• Reaffirmed 2025 FCF guidance at ~$575 million; Q1 cash operating margin was 65% and fully burdened cash costs were $1.11 per Mcfe.

• Revenue from natural gas, NGLs, and oil rose to $551 million from $326 million year over year; cash provided by operating activities was $216 million, up from $185 million.

• Q1 capital expenditures were $131 million; natural gas, NGL, and oil production margin increased to $194 million, or $1.31 per Mcfe, from $144 million, or $1.02 per Mcfe.

Outlook and guidance

• Reaffirmed 2025 production guidance of 605–620 Bcfe, Adjusted EBITDAX of $1,225–$1,275 million, and capital expenditures of $450–$500 million.

• 2025 FCF-per-share guidance was updated to $3.97; FCF guidance assumes ~85% of natural gas volumes are hedged and includes ~$30 million of expected asset sales.

• Production is expected to be heavier in the first half, with a decline in the second half and into 2026; activity levels remain as planned, with decisions informed by market conditions and storage trends.

• 2025 cash operating margin is projected at 62%, with leverage expected to decline to 1.8x if expected FCF is used to reduce net debt.