CNX Resources (CNX) AI Stock Analysis

• Market Cap: $4.51B
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.78
• Revenue Growth: -4.26%
• EPS Growth: -105.72%
• Country: US
• Employees: 458
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.57
• Shares Outstanding: 147,217,380
• 10 Day Avg. Volume: 2,825,180
• 30 Day Avg. Volume: 2,463,404
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.08
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 3.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.91
• Price Target Upside: 3.14% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12

CNX Resources faces significant profitability and valuation challenges, reflected in its negative P/E ratio and net losses. While technicals suggest potential short-term stability, the company's financial health, burdened by high debt and capital expenditures, remains a concern. Positive developments, such as strategic financing for asset expansion and potential regulatory advancements, offer some optimism but are counterbalanced by regulatory uncertainties and production level challenges.

Positive Factors

Capital Efficiency

CNX Resources has demonstrated attractive capital efficiency with peer-leading well productivity and an attractive cost structure.

Company Rating and Price Target

Analyst is raising the rating from EW to OW with a price target of $48 based on recent NYMEX strip prices.

Operational Performance

EBITDAX of $280mn beats estimates due to higher production and hedge gains.

Negative Factors

Guidance and Production

CNX expects FY2025 total production between 605-620 Bcfe, lower than both Street and MSUSAe at ~632 Bcfe.

Regulatory Challenges

The final rules issued by the Treasury were 'overly restrictive' and do not provide sufficient economic incentives for CNX to grow its CMM business, leading to a shift in focus for monetizing New Technologies.

Stock Performance

CNX stock has underperformed gas peers by ~30% due to dashed expectations of added revenue opportunities for the New Technology segment from 45V tax credits.

CNX Resources Business Overview & Revenue Model

Company Description

CNX Resources Corporation, an independent natural gas and midstream company, acquires, explores for, develops, and produces natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane. It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 526,000 net Marcellus Shale acres; and approximately 610,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 1,006,000 net acres in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 282,000 net CBM acres in Central Appalachia, as well as 1,733,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

How the Company Makes Money

CNX Resources makes money by exploring, producing, and selling natural gas. The company's primary revenue stream comes from the sale of natural gas produced from its assets in the Appalachian Basin. CNX employs advanced drilling and completion techniques to maximize extraction efficiency and reduce costs. In addition to selling natural gas, the company may engage in hedging activities to manage commodity price risks. CNX also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. Their focus on cost management and technological innovation ensures competitive positioning in the energy market.

CNX Resources Financial Statement Overview

Summary

CNX Resources faces profitability challenges with declining revenue and consistent net losses impacting margins. While the balance sheet shows a strong equity base, high debt levels pose a risk. Cash flow management reflects operational strengths but is burdened by heavy capital expenditures. Stability and growth require addressing profitability and leverage.

Income Statement

CNX Resources shows inconsistent revenue performance, with recent declines. The gross profit margin is high at 100% for 2024, but net profit margins have been negative due to significant net losses in recent years. EBIT and EBITDA margins have deteriorated, reflecting challenges in maintaining operational efficiency and profitability.

Balance Sheet

The company has maintained a relatively stable equity position but faces high debt levels, evidenced by a debt-to-equity ratio of approximately 1.11 in 2024. The equity ratio remains strong, indicating a solid equity base, but the return on equity is impacted by net losses, suggesting challenges in generating returns for shareholders.

Cash Flow

Cash flow from operations has been positive, but free cash flow has been negative in recent years due to high capital expenditures. The operating cash flow to net income ratio is positive, suggesting operational cash generation, but the free cash flow to net income ratio is concerning due to substantial negative free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.44B	1.46B	3.92B	2.39B	1.08B
	Gross Profit
415.77M	475.50M	2.80B	1.36B	131.99M
	EBIT
193.65M	311.19M	2.59B	1.14B	-101.44M
	EBITDA
515.99M	2.80B	376.96M	29.76M	81.80M
	Net Income Common Stockholders
-90.49M	1.72B	-142.08M	-498.64M	-428.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.20M	443.00K	21.32M	3.56M	15.62M
	Total Assets
8.51B	8.63B	8.52B	8.10B	8.04B
	Total Debt
454.04M	2.37B	2.39B	2.27B	2.54B
	Net Debt
454.04M	2.36B	2.37B	2.27B	2.52B
	Total Liabilities
4.41B	4.27B	5.57B	4.40B	3.62B
	Stockholders Equity
4.10B	4.36B	2.95B	3.70B	4.42B
Cash Flow		Free Cash Flow
275.45M	135.18M	669.26M	460.50M	307.78M
	Operating Cash Flow
815.78M	814.59M	1.24B	926.36M	795.07M
	Investing Cash Flow
-484.47M	-509.38M	-528.29M	-420.61M	-438.97M
	Financing Cash Flow
-276.68M	-326.09M	-688.96M	-523.78M	-350.79M

CNX Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNX, the sentiment is Negative. The current price of 29.97 is below the 20-day moving average (MA) of 30.66, below the 50-day MA of 30.33, and below the 200-day MA of 31.31, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNX.

CNX Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRC	74 Outperform	$3.23B	7.72	13.06%	4.13%	5.12%	-47.76%
MGY	74 Outperform	$3.94B	10.47	20.06%	2.56%	7.25%	-4.99%
MUR	69 Neutral	$2.98B	7.74	7.77%	5.73%	-12.48%	-36.47%
VVV	67 Neutral	$4.26B	16.06	186.35%	―	11.85%	―
NFG	65 Neutral	$7.02B	82.82	-0.36%	2.61%	-10.64%	-102.62%
Sector *	55 Neutral	$7.05B	3.47	-6.10%	6.00%	-0.44%	-51.04%
CNX	48 Neutral	$4.51B	9.01	-2.14%	―	-4.26%	-105.72%

CNX Resources Corporate Events

CNX Resources Completes $200M Senior Notes Offering

On January 21, 2025, CNX Resources Corporation announced the completion of a $200 million private offering of 7.250% senior notes due 2032, intended to fund general corporate purposes and transaction costs for a pending acquisition. The offering highlights CNX’s strategic financial management, with the new notes treated as a single class with previously issued notes, and covenants in place to manage company and guarantor indebtedness.