CNX Resources (CNX) Q4 2023 earnings summary

Executive summary

• Generated $62 million of Q4 free cash flow (FCF), extending positive FCF generation to 16 consecutive quarters; FY2023 FCF totaled $305 million.

• 2024 priorities centered on safe execution, New Technologies FCF growth, and increasing long-term FCF per share.

Financial highlights

• Cumulative FCF since Q1 2020 reached $1.9 billion.

• Q4 production was 147 Bcfe; FY2023 production reached 560 Bcfe, ~5 Bcfe above the high end of prior guidance.

• Q4 capital expenditures were $108 million, down as completion activity declined at the end of the 2023 program.

• FY2023 share repurchases totaled 17.7 million shares for ~$320 million, or $18.10 per share.

Outlook and guidance

• 2024 production guidance is 570–590 Bcfe, with a midpoint of ~580 Bcfe; expected liquids mix is 8%–9% and 82% of natural gas is hedged.

• 2024 adjusted EBITDAX guidance is $1.0–$1.15 billion; FCF guidance is ~$300 million, or $1.95 per share, including ~$20 million of expected asset sales.

• 2024 capital expenditure guidance is $575–$625 million: $430–$450 million for drilling and completions, $140–$165 million for non-D&C, and $5–$10 million discretionary.

• 2025 capital spending is expected below $500 million while maintaining annual production near 580 Bcfe.

• 2024 FCF guidance includes ~$75 million from New Technologies.