CNX Resources (CNX) Q4 2024 earnings summary

Executive summary

• Achieved 20th consecutive quarter of positive free cash flow, generating $199 million in Q4 2024 and $331 million for the full year, exceeding guidance.

• Q4 2024 saw robust free cash flow in the New Technologies segment, driven by timing of environmental attribute monetization, with some volumes shifted from Q3 to Q4.

• Announced initial 2025 free cash flow guidance of approximately $575 million, excluding the $505 million Apex Energy acquisition.

• Production for 2025 is guided to remain flat overall, with capital spending front-loaded in the first half and potential for modest declines in Apex volumes in the second half.

• Flexibility exists to accelerate activity and increase volumes in the second half of 2025 if market conditions and pricing are favorable.

Financial highlights

• Q4 2024 free cash flow: $199 million; 2024 full-year FCF: $331 million.

• Q4 2024 cash operating margin: 63%; fully burdened cash costs before DD&A: $1.22 per Mcfe.

• Trailing twelve-month leverage ratio: 2.1x.

• Since Q1 2020, generated $2.2 billion in free cash flow.

• 2025E free cash flow yield: 12%.

Outlook and guidance

• 2025E free cash flow guidance: ~$575 million; FCF per share: $3.85.

• 2025E cash operating margin: 63%; leverage ratio expected to improve to 1.6x.

• 2025E production volumes (pro forma with Apex): 605–620 Bcfe; 85% of natural gas hedged.

• Capital expenditures (pro forma): $450–$500 million; includes $30 million in expected asset sales.

• New Technologies free cash flow is expected to be lower in 2025 compared to Q4 2024, normalizing to a $75 million annual run rate due to timing of monetization.