CNX Resources (CNX) Q3 2024 earnings summary

Executive summary

• Management deferred detailed 2025 production and CapEx guidance to next quarter, citing the need to assess evolving gas prices and market conditions.

• Achieved 19th consecutive quarter of positive free cash flow, generating $60 million in Q3 2024, with cumulative FCF since 2020 totaling approximately $2.0 billion.

• Net income for Q3 2024 was $66 million ($0.37 per diluted share), up from $21 million in Q3 2023, driven by higher realized prices and lower unrealized derivative losses.

• Continued aggressive share repurchases, retiring 36% of outstanding shares since 2020.

• Operational efficiency remains strong or improved, with flexibility in production profiles due to deferred DUCs and cost reductions in Deep Utica.

Financial highlights

• Q3 2024 free cash flow was $60 million; total FCF since Q1 2020 reached $2.0 billion.

• Q3 2024 cash operating margin at 58%; fully burdened cash costs before DD&A at $1.11 per Mcfe.

• Q3 2024 net income was $66 million; total revenue for Q3 was $424 million, up from $351 million in Q3 2023.

• Q3 2024 EBITDA (non-GAAP) was $117 million, down from $128 million in Q3 2023.

• Q3 2024 production volumes were 134.5 Bcfe, flat sequentially.

Outlook and guidance

• Full 2025 production and capital guidance will be provided next quarter, dependent on gas price outlook.

• 2024 free cash flow guidance reaffirmed at approximately $300 million, or $2.01 per share.

• 2024 production volumes expected between 545–555 Bcfe; 86% of natural gas hedged.

• 2024 capital expenditures expected at $525–$550 million.

• Guidance for new technology segment, including CMM and AutoSep, will also be updated next quarter.