CNX Resources (CNX) Q4 2024 earnings summary

Executive summary

• Generated $199 million of Q4 2024 free cash flow and $331 million for FY 2024, extending the streak to 20 consecutive positive-FCF quarters and exceeding guidance.

• Q4 New Technologies free cash flow was $30 million, boosted by timing of environmental-attribute monetization and volumes shifted from Q3.

• Initial 2025 free cash flow guidance is ~$575 million, excluding the $505 million Apex acquisition.

• 2025 production is guided at 605–620 Bcfe including Apex; legacy production is expected to remain ~550 Bcfe, with flexibility to adjust activity as markets evolve.

Financial highlights

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

• FY 2024 production was 550 Bcfe and capital spending was $540 million, near the midpoints of prior guidance.

• Generated $2.2 billion in cumulative free cash flow since Q1 2020.

• Q4 2024 coal mine methane volumes generated $83 million of free cash flow from environmental-attribute sales.

Outlook and guidance

• 2025 free cash flow guidance is ~$575 million, or $3.85 per share, including ~$75 million from environmental attributes and excluding the $505 million Apex acquisition; based on Jan. 15 NYMEX pricing of $3.86/MMBtu.

• 2025 production guidance is 605–620 Bcfe, including 60–65 Bcfe from Apex; 85% of natural gas is hedged.

• 2025 capital spending guidance is $450–$500 million, including ~$25 million for Apex assets; run-rate spending to maintain flat production is below $500 million annually.

• Capital spending is front-loaded in H1; Apex volumes may decline modestly in H2, with scope to accelerate activity and volumes if pricing is favorable.

• Plans call for eight deep Utica wells to be turned in line in 2025 and eight Apex wells in Q1.