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: 22.23%
• EPS Growth: -130.65%
• 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: 1.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.52
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.09
• Price Target Upside: 5.64% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12

CNX Resources' overall score reflects a challenging financial performance, particularly in terms of profitability and revenue consistency. While operational efficiency and cash flow management are strengths, high financial leverage and market volatility pose risks. Technical analysis indicates potential downward momentum, and the negative P/E ratio highlights valuation concerns. The earnings call provided mixed insights, with strategic hedging and capital allocation as positives, but concerns over market conditions and cash taxes remain.

Positive Factors

Earnings

Adjusted EBITDAX slightly beat BofA and Consensus estimates due to lower gathering, processing, and transportation taxes.

Financial Performance

CNX delivered an upbeat 4Q underscored by a volume and free cash flow beat helped by one-time items.

Stock Valuation

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

Negative Factors

Debt and Leverage

CNX is the most leveraged natural gas exploration and production company in the coverage with a net debt and leverage of 2.43x.

Guidance

The expected free cash flow for FY25 is $489.7 million, which is below the guidance of approximately $575 million.

Stock Price Challenges

The share price is below the price where shares were repurchased last quarter, indicating potential challenges in achieving the price objective.

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 negative net income and fluctuating revenues. Operational efficiency is a strength, with stable EBIT and EBITDA margins. Financial leverage is a concern but is counterbalanced by a robust equity position. Strong cash flows highlight effective cash management despite industry volatility. Strategic improvements in cost management and revenue growth are necessary for long-term financial health.

Income Statement

The company has shown fluctuating revenue with a decrease in the TTM period compared to previous years. The gross profit margin has been inconsistent, reflecting market volatility in the oil and gas sector. The net profit margin is negative, indicating operational challenges, but the EBIT and EBITDA margins are relatively stable, suggesting potential for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is somewhat high, implying increased financial leverage, which could pose risks if not managed properly. However, the company maintains a strong equity position, indicating long-term solvency. Return on Equity (ROE) is currently negative due to net losses, but the equity ratio remains healthy, reflecting a solid foundation of stockholder investment.

Cash Flow

Despite a decline in free cash flow growth, the operating cash flow is robust relative to net income, suggesting strong cash-generating ability. The free cash flow to net income ratio is positive, indicating effective management in converting earnings to cash despite operational losses. Continued focus on capital expenditures and cash flow management will be crucial.

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: 29.43
• 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 29.43 is below the 20-day moving average (MA) of 29.94, below the 50-day MA of 30.26, and below the 200-day MA of 31.46, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.40 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
MUR	73 Outperform	$2.98B	7.74	7.77%	5.77%	-12.48%	-36.47%
CRC	70 Outperform	$3.13B	7.47	13.06%	4.18%	5.12%	-47.76%
MGY	69 Neutral	$3.94B	10.47	20.06%	2.53%	7.25%	-4.99%
VVV	67 Neutral	$4.35B	16.43	186.35%	―	11.85%	―
NFG	65 Neutral	$7.02B	82.82	-0.36%	2.65%	-10.64%	-102.62%
CNX	59 Neutral	$4.51B	9.01	-7.30%	―	22.23%	-130.65%
Sector *	56 Neutral	$6.93B	3.27	-3.99%	5.91%	-0.52%	-47.74%

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.