CNX Resources (CNX) Q3 2024 earnings summary

Executive summary

• Generated $60 million of Q3 free cash flow, the 19th consecutive positive quarter; cumulative FCF since Q1 2020 reached $2.0 billion.

• Q3 net income was $66 million ($0.37 per diluted share), up from $21 million a year earlier; nine-month net income fell to $54 million from $1.207 billion.

• 2025 production and capital guidance deferred to next quarter pending gas-price and market conditions; operational execution and production flexibility remained strong.

Financial highlights

• Q3 revenue and other operating income was $424 million, up from $351 million year over year; nine-month revenue was $1.130 billion, down from $2.466 billion.

• Q3 cash operating margin was 58%, with fully burdened cash costs before DD&A of $1.11 per Mcfe.

• Q3 natural gas, NGL and oil revenue was $259 million, up 2%; Q3 EBITDA was $117 million, down from $128 million year over year.

• 2024 adjusted EBITDAX guidance was updated to $975–$1,025 million from $950–$1,050 million.

Outlook and guidance

• 2024 production guidance remained 545–555 Bcfe; capital expenditure guidance was $525–$550 million, with Q4 spending expected to decline sequentially.

• 2024 FCF guidance remained $300 million, or $2.01 per share; FCF expected to rise in Q4 as capital spending falls, pricing improves and working-capital headwinds reverse.

• 86% of 2024 gas production was hedged; as of Oct. 4, 433.2 Bcf of 2024 gas was hedged at $2.57/Mcf and 410.9 Bcf of 2025 gas at $2.58/Mcf.

• Eleven drilled-but-uncompleted wells provide flexibility; five turn-in-lines planned for late 2024 shifted to early 2025 with no change in overall activity.