CNX Resources (CNX) Q1 2025 earnings summary

Executive summary

• Achieved 21st consecutive quarter of positive free cash flow, generating $100 million in Q1 2025, despite a reported net loss of $198 million driven by a $418 million unrealized loss on commodity derivatives and higher operating expenses.

• Completed the acquisition of Apex Energy II, expanding undeveloped leasehold and infrastructure in central Pennsylvania, with 19 wells brought online in Q1, most in the latter part of the quarter.

• Total sales volumes increased 7.4 Bcfe year-over-year to 147.8 Bcfe, primarily due to the Apex acquisition and new wells.

• Focus remains on maximizing free cash flow per share and long-term per share value creation, rather than targeting specific production levels.

• Maintains a 161-year regional legacy and substantial asset base, emphasizing ultra-low carbon intensive natural gas development and technology in Appalachia.

Financial highlights

• Q1 2025 free cash flow of $100 million; cumulative FCF since Q1 2020 totals $2.3 billion.

• Robust share repurchase activity in Q1 2025, with $125 million allocated to buybacks, retiring 4.2 million shares at an average price of $29.88; since 2020, about 38% of outstanding shares have been retired.

• Revenue from natural gas, NGLs, and oil rose to $551 million from $326 million year-over-year, but total revenue and other operating income was $82 million, down from $384 million, due to a $528 million loss on commodity derivatives.

• Cash provided by operating activities was $216 million, up from $185 million year-over-year.

• Cash taxes remain de minimis, with only minor state tax impacts; material cash tax payments not expected until $3 billion cumulative free cash flow, projected for 2027-2028.

Outlook and guidance

• 2025 free cash flow guidance reaffirmed at approximately $575 million, with FCF per share expected between $3.85 and $3.97.

• 2025 production volumes guided at 605–620 Bcfe, with 85% of natural gas hedged; production expected to be heavier in the first half of the year, with a decline in the second half and into 2026.

• 2025 capital expenditures expected between $450–$500 million.

• Free cash flow guidance remains resilient despite lower NYMEX and NGL pricing and wider gas differentials.

• Company expects to remain in compliance with debt covenants and meet liquidity needs for at least the next twelve months.