CNX Resources (CNX) Q3 2025 earnings summary

Executive summary

• Achieved 23 consecutive quarters of positive free cash flow, with Q3 2025 FCF at $226 million, including $68 million from asset sales, and repurchased 6.1 million shares at an average price of $30.12, totaling $182 million; since 2020, 43% of outstanding shares have been retired.

• Net income for Q3 2025 was $202 million ($1.21 per diluted share), up from $66 million in Q3 2024, driven by higher natural gas prices, increased sales volumes, and significant gains on derivatives and asset sales.

• The Apex Energy II acquisition expanded undeveloped leasehold and infrastructure in central Pennsylvania, contributing to higher production volumes and enabling full leverage of existing infrastructure.

• Production and spending expected to remain in maintenance mode for 2026, pending further clarity on long-term gas demand.

• Well outperformance observed on Apex acreage and new pods, supporting capital efficiency and flat production focus.

Financial highlights

• Q3 2025 revenue and other operating income totaled $584 million, up from $424 million in Q3 2024.

• Q3 2025 cash operating margin was 62%, with fully burdened cash costs before DD&A at $1.09 per Mcfe.

• Operating margin improved to 42% in Q3 2025.

• Since Q1 2020, generated $2.7 billion in free cash flow.

• Trailing twelve-month leverage ratio stood at 2.1x.

Outlook and guidance

• 2025 production volume guidance updated to 620–625 Bcfe, with 7–8% liquids and 84–85% of natural gas hedged.

• 2025 FCF guidance raised to $575–$640 million, reflecting higher asset sale proceeds.

• 2025 FCF per share guidance updated to ~$4.07–$4.75, based on reduced share count.

• Maintenance mode expected for 2026, with production and spending levels similar to 2025; full detail on 2026 guidance to be provided in January.

• 45Z tax credit guidance of $30 million annual run rate expected to be confirmed after final rulemaking in early 2026.