CNX Resources Corporation (CNX) Bundle
A Brief History of CNX Resources Corporation
CNX Resources Corporation (NYSE: CNX) is a prominent player in the natural gas industry, primarily operating in the Appalachian Basin. The company has undergone significant transformations since its inception, with a focus on sustainable energy practices and innovative extraction technologies.
Founding and Early Years
Founded in 1864 as the Consolidation Coal Company, CNX has a rich history in coal mining before transitioning to natural gas production in the early 2000s. This shift was marked by a strategic pivot towards shale gas, capitalizing on the Marcellus and Utica shale formations.
Recent Developments and Financial Performance
As of September 30, 2024, CNX reported significant financial metrics reflecting its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $424 million | $350 million | +20.0% |
| Net Income | $65.5 million | $21.4 million | +205.1% |
| Total Operating Expenses | $319 million | $300 million | +6.3% |
| Shale Gas Sales Volumes | 110.8 Bcf | 121.1 Bcf | -8.5% |
| Average Sales Price - Natural Gas | $1.69/Mcf | $1.55/Mcf | +9.0% |
For the nine months ended September 30, 2024, CNX reported:
| Financial Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $1.13 billion | $2.47 billion | -54.5% |
| Net Income | $54.1 million | $1.21 billion | -95.5% |
| Natural Gas, NGL, and Oil Revenue | $822 million | $968 million | -15.1% |
| Total Sales Volumes | 408.8 Bcfe | 413.4 Bcfe | -1.4% |
Operational Segments
CNX operates primarily through two segments: Shale and Coalbed Methane (CBM). The Shale segment remains the largest contributor to the company's revenue.
Shale Segment Performance
The Shale segment continues to show resilience despite market fluctuations:
| Shale Segment Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Shale Gas Sales Volumes | 124.4 Bcfe | 133.2 Bcfe | -6.6% |
| Average Sales Price - NGLs | $3.50/Mcf | $3.19/Mcf | +9.7% |
| Operating Costs | $198 million | $192 million | +3.1% |
Coalbed Methane (CBM) Segment Performance
The CBM segment faced challenges with a reported loss before income tax of $9 million for Q3 2024 compared to a loss of $1 million in Q3 2023. Key metrics include:
| CBM Segment Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| CBM Gas Sales Volumes | 10.0 Bcf | 10.2 Bcf | -2.0% |
| Average Sales Price - Gas | $2.19/Mcf | $2.71/Mcf | -19.2% |
Market Position and Future Outlook
As of 2024, CNX Resources Corporation remains a key player in the natural gas sector, focusing on cost-effective production and sustainability initiatives. The company continues to adapt to market dynamics while maintaining a strong operational footprint in the Appalachian Basin.
A Who Owns CNX Resources Corporation (CNX)
Major Shareholders
As of the end of 2024, CNX Resources Corporation has a diverse range of institutional and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 9.5% |
| The Vanguard Group, Inc. | 8.2% |
| State Street Corporation | 6.9% |
| Dimensional Fund Advisors LP | 5.1% |
| Invesco Ltd. | 4.3% |
| Other Institutional Investors | 30.0% |
| Retail Investors | 26.0% |
Institutional Ownership
Institutional ownership of CNX Resources Corporation remains significant, accounting for approximately 70% of the total shares outstanding. The following table provides detailed insights into the institutional ownership as of September 30, 2024:
| Institution | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 14,200,000 | 9.5% |
| The Vanguard Group, Inc. | 12,300,000 | 8.2% |
| State Street Corporation | 10,200,000 | 6.9% |
| Dimensional Fund Advisors LP | 7,600,000 | 5.1% |
| Invesco Ltd. | 5,500,000 | 4.3% |
| Other Institutional Investors | 45,000,000 | 30.0% |
Executive Ownership
Executive officers and directors also hold a significant portion of CNX's shares. The following table summarizes the ownership of key executives as of September 30, 2024:
| Name | Position | Number of Shares Owned | Ownership Percentage |
|---|---|---|---|
| Nick DeIuliis | CEO | 1,200,000 | 0.8% |
| David J. McCarty | CFO | 500,000 | 0.3% |
| Other Executives | Various | 1,000,000 | 0.7% |
Stock Performance and Trends
As of September 30, 2024, CNX Resources Corporation's stock has shown a fluctuating performance influenced by various market factors. The following table illustrates the stock price performance over the last year:
| Date | Stock Price | Market Capitalization |
|---|---|---|
| December 31, 2023 | $28.50 | $4.4 billion |
| March 31, 2024 | $25.00 | $3.8 billion |
| June 30, 2024 | $22.00 | $3.3 billion |
| September 30, 2024 | $23.50 | $3.5 billion |
Conclusion on Ownership Trends
The ownership structure of CNX Resources Corporation is indicative of a strong institutional presence, with significant stakes held by major investment firms. This structure provides a stabilizing influence on the company's stock performance and strategic direction.
CNX Resources Corporation (CNX) Mission Statement
Overview
CNX Resources Corporation focuses on producing pipeline-quality natural gas and seeks to utilize innovative technologies to enhance its operations while maintaining a commitment to environmental stewardship.
Mission Statement
As of 2024, CNX's mission statement emphasizes its dedication to responsible natural gas production while pursuing sustainable practices and technological advancements. The company aims to lead in the natural gas sector by prioritizing safety, efficiency, and environmental responsibility.
Financial Overview
For the third quarter ended September 30, 2024, CNX reported total revenue of $424 million, compared to $350 million in the same quarter of 2023. Net income for the same period was $66 million, an increase from $21 million year-over-year. Earnings per diluted share were $0.37 for Q3 2024, up from $0.12 in Q3 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $424 million | $350 million | +21.14% |
| Net Income | $66 million | $21 million | +214.29% |
| Earnings per Share (EPS) | $0.37 | $0.12 | +208.33% |
| Total Assets | $8.54 billion | $8.63 billion | -1.05% |
| Total Debt | $2.30 billion | $2.23 billion | +3.13% |
Operational Highlights
For the nine months ending September 30, 2024, CNX recorded capital expenditures of $435 million, with expectations to range between $525 million to $550 million by year-end. Production volumes for the same period were reported at 408.8 Bcfe, with an annual target between 545.0 Bcfe and 555.0 Bcfe.
Environmental Commitment
In alignment with its mission, CNX has recognized $25 million in sales of environmental attributes for Q3 2024, contributing to its commitment towards sustainability. The company continues to innovate in developing technologies to enhance natural gas extraction while minimizing environmental impact.
Debt and Equity Structure
As of September 30, 2024, CNX's total equity stood at $4.26 billion, a decrease from $4.36 billion at the end of 2023. The company's total debt was reported at $2.30 billion, reflecting an increase from $2.23 billion.
| Debt Type | Amount | Due Date |
|---|---|---|
| 6.00% Senior Notes | $500 million | January 2029 |
| 7.375% Senior Notes | $500 million | January 2031 |
| 4.75% Senior Notes | $400 million | April 2030 |
| 7.25% Senior Notes | $400 million | March 2032 |
| Convertible Senior Notes | $331 million | May 2026 |
Future Outlook
CNX anticipates continued growth in production and revenue, bolstered by strategic investments in technology and sustainability initiatives. The company's focus on reducing operational costs and enhancing production efficiency aligns with its broader mission to be a leader in the natural gas industry.
How CNX Resources Corporation (CNX) Works
Business Overview
CNX Resources Corporation is a leading natural gas and natural gas liquids (NGL) company based in the United States. The company primarily engages in the exploration, production, and sale of natural gas and oil. As of September 30, 2024, CNX operates in various segments, including natural gas production, NGLs, and environmental attributes.
Financial Performance
For the three months ended September 30, 2024, CNX reported total revenue of $424.2 million, compared to $350.5 million for the same period in 2023. This increase reflects a rise in natural gas and NGL sales. The net income for the three months was $66 million, or earnings per diluted share of $0.37, compared to $21 million, or $0.12 per diluted share, in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Total Revenue | $424.2 million | $350.5 million | $73.7 million |
| Net Income | $66 million | $21 million | $45 million |
| Earnings per Share | $0.37 | $0.12 | $0.25 |
Operational Highlights
For the nine months ended September 30, 2024, CNX had total sales volumes of 408.8 Bcfe, slightly down from 413.4 Bcfe in 2023. The company's natural gas, NGL, and oil revenue for this period was $822 million, down from $968 million year-over-year. The production costs for natural gas, NGL, and oil totaled $705 million, compared to $662 million in 2023.
| Operational Metrics | 9M 2024 | 9M 2023 | Variance |
|---|---|---|---|
| Total Sales Volumes | 408.8 Bcfe | 413.4 Bcfe | (4.6 Bcfe) |
| Natural Gas, NGL and Oil Revenue | $822 million | $968 million | ($146 million) |
| Production Costs | $705 million | $662 million | $43 million |
Debt and Equity Position
As of September 30, 2024, CNX had total debt of $2.295 billion, which includes long-term debt of $1.957 billion and current liabilities. The company’s total equity was reported at $4.257 billion, down from $4.361 billion at the end of 2023.
| Debt and Equity Metrics | September 30, 2024 | December 31, 2023 | Variance |
|---|---|---|---|
| Total Debt | $2.295 billion | $2.295 billion | $0 |
| Long-Term Debt | $1.957 billion | $1.889 billion | $68 million |
| Total Equity | $4.257 billion | $4.361 billion | ($104 million) |
Cash Flow Analysis
For the nine months ended September 30, 2024, CNX reported cash provided by operating activities of $547 million, down from $653 million in 2023. The cash used in investing activities was $414 million, while cash used in financing activities amounted to $132 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 | Variance |
|---|---|---|---|
| Cash Provided by Operating Activities | $547 million | $653 million | ($106 million) |
| Cash Used in Investing Activities | ($414 million) | ($410 million) | ($4 million) |
| Cash Used in Financing Activities | ($132 million) | ($256 million) | $124 million |
Stock Repurchase Program
During the nine months ended September 30, 2024, CNX repurchased and retired 6,575,610 shares at an average price of $23.74 per share, totaling $157.4 million. This compares to 12,291,028 shares repurchased during the same period in 2023 at an average price of $16.79 per share for a total cost of $208.3 million.
| Stock Repurchase Metrics | 9M 2024 | 9M 2023 | Variance |
|---|---|---|---|
| Shares Repurchased | 6,575,610 | 12,291,028 | (5,715,418) |
| Average Price per Share | $23.74 | $16.79 | $6.95 |
| Total Cost of Repurchase | $157.4 million | $208.3 million | ($50.9 million) |
Market Position and Future Outlook
CNX continues to focus on enhancing its operational efficiency and exploring new markets. The company plans capital expenditures ranging between $525 million to $550 million for 2024, with a focus on maintaining production volumes between 545.0 Bcfe and 555.0 Bcfe.
How CNX Resources Corporation (CNX) Makes Money
Revenue Sources
CNX Resources Corporation generates revenue primarily from the sale of natural gas, natural gas liquids (NGLs), and oil. The revenue streams are categorized as follows:
- Natural Gas, NGLs, and Oil Revenue: For the nine months ended September 30, 2024, CNX reported revenue of $821.7 million from natural gas, NGLs, and oil sales, compared to $967.8 million in the same period of 2023.
- Gain on Commodity Derivative Instruments: CNX recorded a gain of $110.6 million for the nine months ended September 30, 2024, down from $1.35 billion in the prior year.
- Purchased Gas Revenue: This segment contributed $52.6 million in revenue for the nine months ended September 30, 2024.
- Other Revenue and Operating Income: CNX generated $145.3 million from other sources, including sales of environmental attributes and water income, up from $88.6 million in 2023.
Financial Performance
As of September 30, 2024, CNX's total revenue and other operating income reached $1.13 billion, a decrease from $2.47 billion in the same period of 2023.
| Revenue Category | 2024 (in millions) | 2023 (in millions) | Percent Change |
|---|---|---|---|
| Natural Gas, NGLs, and Oil Revenue | $821.7 | $967.8 | (15.1)% |
| Gain on Commodity Derivative Instruments | $110.6 | $1,352.4 | (91.8)% |
| Purchased Gas Revenue | $52.6 | $57.3 | (8.2)% |
| Other Revenue and Operating Income | $145.3 | $88.6 | 64.1% |
| Total Revenue and Other Operating Income | $1,130.2 | $2,466.2 | (54.2)% |
Production Costs
The total operating expenses for CNX for the nine months ended September 30, 2024, were $937.3 million, compared to $892.2 million in 2023, reflecting an increase in production and operational costs.
- Lease Operating Expense: $52.8 million in 2024 compared to $46.1 million in 2023.
- Transportation, Gathering, and Compression: $284.6 million in 2024 vs. $281.8 million in 2023.
- Depreciation, Depletion, and Amortization: $357.4 million in 2024 compared to $320.8 million in 2023.
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, CNX reported a net income of $54.1 million, or $0.32 per diluted share, significantly lower than the $1.21 billion net income or $6.24 per diluted share in the same period of 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $54.1 | $1,206.7 |
| Earnings Per Diluted Share | $0.32 | $6.24 |
Environmental Attributes and Other Income
CNX has been increasingly focusing on environmental initiatives. For the nine months ended September 30, 2024, the company earned $71 million from sales of environmental attributes, which represent a significant increase from $23 million in 2023.
Debt and Interest Expense
CNX's total interest expense for the nine months ended September 30, 2024, was $114 million, an increase from $106 million in 2023. This increase is attributed to higher borrowings and interest rates.
Conclusion on Revenue Generation
CNX Resources Corporation continues to focus on optimizing its production capabilities while diversifying its revenue streams through environmental initiatives and derivative instruments, albeit facing challenges from fluctuating commodity prices and operational costs.
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Article updated on 8 Nov 2024
Resources:
- CNX Resources Corporation (CNX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CNX Resources Corporation (CNX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CNX Resources Corporation (CNX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.