CNX Resources (CNX) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: N/A
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.69
• Revenue Growth: 22.23%
• EPS Growth: -130.65%
• Country: US
• Employees: 458
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.79
• Shares Outstanding: 144,722,730
• 10 Day Avg. Volume: 2,046,043
• 30 Day Avg. Volume: 2,641,105
• PEG Ratio: 0.07
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.05
• 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: $31.40
• Price Target Upside: -4.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

CNX Resources' overall stock score of 62 reflects a mixed financial performance characterized by operational efficiency but offset by profitability challenges. Technical indicators suggest neutral to bearish sentiment, while valuation remains a concern due to recent losses. Positive factors from the earnings call, such as strategic buybacks and strong hedging, are tempered by market pricing pressures and tax challenges. Overall, CNX shows potential stability but requires strategic improvements to enhance its financial and stock performance.

Positive Factors

Financial Performance

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

Operational Efficiency

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

Stock Valuation

Analyst's NAV-based price target for CNX has increased to $29/share.

Negative Factors

Cash Flow

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

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.

Hedge Performance

CFPS estimates for 2025 and 2026 are being lowered primarily due to projected hedge losses.

CNX Resources Business Overview & Revenue Model

Company Description

CNX Resources Corporation (CNX) is a leading independent natural gas exploration and production company primarily focused on the Appalachian Basin. The company is engaged in the development, production, and sale of natural gas, with a strong emphasis on the Marcellus and Utica shale formations. CNX is committed to operational excellence, innovative technologies, and sustainable practices to deliver reliable energy solutions.

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 challenges with profitability, reflected in negative net income and fluctuating revenues. However, operational efficiency remains a strength, with stable EBIT and EBITDA margins. Financial leverage is a concern but is counterbalanced by a robust equity position. Cash flows are strong, highlighting 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.67B	1.44B	1.46B	3.92B	2.39B	1.08B
	Gross Profit
759.41M	415.77M	475.50M	2.80B	1.36B	131.99M
	EBIT
555.32M	178.84M	311.19M	2.59B	1.14B	-101.44M
	EBITDA
249.45M	515.99M	2.80B	376.96M	29.76M	81.80M
	Net Income Common Stockholders
-295.06M	-90.49M	1.72B	-142.08M	-498.64M	-428.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.62M	17.20M	443.00K	21.32M	3.56M	15.62M
	Total Assets
9.05B	8.51B	8.63B	8.52B	8.10B	8.04B
	Total Debt
2.79B	2.29B	2.37B	2.39B	2.27B	2.54B
	Net Debt
2.79B	2.28B	2.36B	2.37B	2.27B	2.52B
	Total Liabilities
5.28B	4.41B	4.27B	5.57B	4.40B	3.62B
	Stockholders Equity
3.77B	4.10B	4.36B	2.95B	3.70B	4.42B
Cash Flow		Free Cash Flow
342.76M	275.45M	135.18M	669.26M	460.50M	307.78M
	Operating Cash Flow
846.37M	815.78M	814.59M	1.24B	926.36M	795.07M
	Investing Cash Flow
-958.41M	-484.47M	-509.38M	-528.29M	-420.61M	-438.97M
	Financing Cash Flow
122.94M	-276.68M	-326.09M	-688.96M	-523.78M	-350.79M

CNX Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNX, the sentiment is Positive. The current price of 33.05 is above the 20-day moving average (MA) of 30.65, above the 50-day MA of 30.66, and above the 200-day MA of 31.78, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 93.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNX.

CNX Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUR	76 Outperform	$3.15B	8.66	7.54%	5.43%	-14.90%	-27.53%
CRC	74 Outperform	$3.80B	7.82	17.86%	3.41%	41.68%	53.13%
MGY	73 Outperform	$4.36B	11.30	20.85%	2.37%	8.78%	0.56%
VVV	73 Outperform	$4.44B	16.93	174.55%	―	9.56%	64.10%
NFG	70 Outperform	$7.34B	184.56	1.30%	2.54%	7.14%	-90.91%
CNX	62 Neutral	$4.78B	9.01	-7.30%	―	22.23%	-130.65%
Sector *	57 Neutral	$7.20B	3.42	-3.69%	5.69%	0.56%	-50.74%

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.