CNX Resources (CNX) Q2 2024 earnings summary

Executive summary

• Q2 2024 production volumes totaled 134.0 Bcfe, with volumes at the higher end of annual guidance and average daily production of 1,472.5 MMcfe.

• Net loss for Q2 2024 was $18.3 million, compared to net income of $475 million in Q2 2023, driven by a $96 million unrealized loss on commodity derivatives and lower asset sale gains.

• Achieved 18th consecutive quarter of positive free cash flow, generating $47 million in Q2 2024.

• Deep Utica wells are meeting expectations on both cost and performance, with more details to be provided in future quarters.

• Continued aggressive share repurchases, retiring approximately 35% of outstanding shares since 2020.

Financial highlights

• Total revenue and other operating income for Q2 2024 was $321 million, down from $840 million in Q2 2023, primarily due to lower commodity prices and derivative impacts.

• Q2 2024 free cash flow was $47 million; total free cash flow since Q1 2020 reached $1.9 billion.

• Q2 2024 cash operating margin was 58%; fully burdened cash costs before DD&A were $1.03 per Mcfe.

• Environmental attribute sales contributed $33 million in Q2 2024, up from $8 million in Q2 2023.

• Q2 2024 diluted loss per share was $0.12, compared to earnings per share of $2.47 in Q2 2023.

Outlook and guidance

• 2024 free cash flow guidance reaffirmed at approximately $300 million, or ~$1.98 per share.

• 2024 production volumes are projected between 545 Bcfe and 555 Bcfe, with 86% of natural gas hedged.

• Adjusted EBITDAX guidance for 2024 is $950–$1,050 million; capital expenditures expected at $525–$575 million.

• No change to 2024 guidance from new tech or CNG third-party sales; both are expected to become more meaningful contributors to revenue and cash flow in 2025.

• Guidance for Tier 1 REC values is expected to remain in the $33-$36 per MWh range for the rest of the year.