0001070412-23-000006.txt : 20230126 0001070412-23-000006.hdr.sgml : 20230126 20230126065253 ACCESSION NUMBER: 0001070412-23-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20230126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230126 DATE AS OF CHANGE: 20230126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CNX Resources Corp CENTRAL INDEX KEY: 0001070412 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 510337383 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14901 FILM NUMBER: 23553874 BUSINESS ADDRESS: STREET 1: CNX CENTER STREET 2: 1000 CONSOL ENERGY DRIVE CITY: CANONSBURG STATE: PA ZIP: 15317 BUSINESS PHONE: 724-485-4000 MAIL ADDRESS: STREET 1: CNX CENTER STREET 2: 1000 CONSOL ENERGY DRIVE CITY: CANONSBURG STATE: PA ZIP: 15317 FORMER COMPANY: FORMER CONFORMED NAME: CONSOL Energy Inc DATE OF NAME CHANGE: 20090303 FORMER COMPANY: FORMER CONFORMED NAME: CONSOL ENERGY INC DATE OF NAME CHANGE: 19980915 8-K 1 cnx-20230126.htm 8-K cnx-20230126
0001070412truefalse00010704122023-01-262023-01-260001070412us-gaap:CommonStockMember2023-01-262023-01-260001070412cnx:PreferredSharePurchaseRightsMember2023-01-262023-01-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 26, 2023
CNX Resources Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-14901 51-0337383
(State or other jurisdiction
of incorporation)
 (Commission File Number) (IRS Employer
Identification No.)
 
CNX Center
1000 Horizon Vue Drive
Canonsburg, Pennsylvania 15317

(Address of principal executive offices)
(Zip code)

Registrant's telephone number, including area code:
(724) 485-4000

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of exchange on which registered
Common Stock ($.01 par value) CNX New York Stock Exchange
Preferred Share Purchase Rights -- New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02 Results of Operations and Financial Condition.
 
CNX Resources Corporation (“CNX” or the “Company”) today released financial and operational results for the fourth quarter and full fiscal year 2022 by posting those results on its website. A copy of those results is attached to this Current Report as Exhibit 99.1 and incorporated into this Item 2.02 by reference.

The information furnished pursuant to this Item 2.02 and Item 7.01, including Exhibit 99.1, are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 7.01 Regulation FD

The information set forth under Item 2.02 is incorporated into this Item 7.01 by reference.    

Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits.  





































SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
                        
                        CNX RESOURCES CORPORATION

By:    /s/ Alan K. Shepard
     Alan K. Shepard
Chief Financial Officer and Executive Vice President


Dated: January 26, 2023


EX-99.1 2 ex991supplementalq422.htm EX-99.1 Document

cnxlogo2a03.jpg

4Q 2022 Earnings Results &
Supplemental Information of CNX Resources
TABLE OF CONTENTS:Page:
Production Volumes and Activity Summary........................................................................................................................2
Hedge Volumes and Pricing…...........................................................................................................................................3
Gas Hedging Gain/Loss Projections and Actuals..............................................................................................................4
Consolidated Statements of Income..................................................................................................................................5
Consolidated Balance Sheets............................................................................................................................................6
Consolidated Statements of Cash Flows….......................................................................................................................7
Market Mix and Natural Gas Price Reconciliation…..........................................................................................................8
Price and Cost Data (Per Mcfe).........................................................................................................................................9
Guidance............................................................................................................................................................................10
Non-GAAP Reconciliations
Definitions..........................................................................................................................................................................11
Sales of Natural Gas, NGL and Oil, including Cash Settlements and Natural Gas, NGL and Oil Production Costs.........
12
Quarterly Adjusted EBITDAX and Adjusted Net Income....................................................................................................13
Operating Margin...............................................................................................................................................................14
Cash Operating Margin......................................................................................................................................................15
Net Debt and Adjusted EBITDAX TTM..............................................................................................................................16
Free Cash Flow..................................................................................................................................................................17

NOTE: Please note that CNX is unable to provide a reconciliation of non-GAAP projected financial results contained in this presentation, including the non-GAAP measures referenced above, to their respective comparable financial measure calculated in accordance with GAAP. This is due to our inability to calculate the comparable GAAP projected metrics, including operating income, net cash provided by operating activities and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.






PRODUCTION VOLUMES
GASQ4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Shale Sales Volumes (Bcf)119.0125.1122.1130.5496.7135.8
CBM Sales Volumes (Bcf)10.510.711.011.543.712.0
Other Sales Volumes (Bcf)0.10.20.1— 0.40.1
LIQUIDS*
NGLs Sales Volumes (Bcfe)10.510.28.88.538.09.7
Oil and Condensate Sales Volumes (Bcfe)0.50.20.30.41.40.6
TOTAL (Bcfe)140.6146.4142.3150.9580.2158.2
Average Daily Production (MMcfe)1,528.41,590.91,564.11,676.21,589.51,719.4
* NGLs, Oil and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices.
Q4 2022 ACTIVITY SUMMARYTDFracTIL
Average Lateral Length(1)
Rigs at Period End
SWPA CentralMarcellus9326,0802
Utica-2---
WV Shirley-PennsboroMarcellus--810,340-
Utica-----
CPA SouthMarcellus-1---
Utica-----
Total9610-2
(1) Measured in lateral feet from perforation to perforation.



2


HEDGE VOLUMES AND PRICING(1)
Q1 202320232024202520262027
NYMEX Hedges
Volumes (Bcf)72.5388.6274.7224.9232.764.3
Average Prices ($/Mcf)$3.12$3.03$3.02$3.22$3.26$4.17
Physical Fixed Price Sales and Index Hedges
Volumes (Bcf)8.634.8106.6129.489.076.2
Average Prices ($/Mcf)$2.25$2.17$2.32$2.31$2.61$3.32
Total Volumes Hedged (Bcf)(2)
81.1423.4381.3354.3321.7140.5
NYMEX + Basis (fully-covered volumes)(3)
Volumes (Bcf)81.1423.4380.0354.3265.7122.4
Average Prices ($/Mcf)$2.69$2.47$2.38$2.37$2.47$3.23
NYMEX Hedges Exposed to Basis
Volumes (Bcf)--1.3-56.018.1
Average Prices ($/Mcf)--$3.02-$3.26$4.17
Total Volumes Hedged (Bcf)(2)
81.1423.4381.3354.3321.7140.5
Estimated Conversion Factor(4)
1.0811.0791.0741.0721.0711.066
(1) Hedge positions as of 1/5/2023.
(2) Excludes basis hedges in excess of NYMEX hedges of 22.8 Bcf, 6.2 Bcf, and 18.9 Bcf for Q1 2023, 2023, and 2025, respectively.
(3) Includes the impact of NYMEX and basis-only hedges as well as physical sales agreements.
(4) To convert Bcf to TBtu, multiply by conversion factor; to convert $/Mcf to $/MMBtu, divide by conversion factor.




3


HEDGING GAIN/LOSS PROJECTIONS
Q1 2023CY2023
Wtd. Avg.Avg.ForecastedWtd. Avg.Avg.Forecasted
Hedged VolumesHedgedForward
Gain/(Loss)(2)
Hedged VolumesHedgedForward
Gain/(Loss)(2)
($/MMBtu)(000 MMBtu)Price
Market(1)
($ in 000s)(000 MMBtu)Price
Market(1)
($ in 000s)
NYMEX78,300$2.88$3.95($84,257)419,300$2.81$3.80($409,933)
Index9,000$1.98$3.14($10,440)36,500$1.98$2.81($30,295)
Basis:
Eastern Gas-South (DOM)14,625($0.66)($0.87)$3,06959,313($0.66)($0.99)$19,878
TCO Pool (TCO)20,250($0.61)($0.66)$1,039100,850($0.64)($0.79)$16,332
Michcon (NMC)10,800($0.25)($0.29)$40443,190($0.25)($0.30)$2,116
TETCO M3 (TMT)2,250$1.74$4.30($5,734)7,750($0.19)$0.78($8,964)
TETCO M2 (BM2)39,150($0.56)($0.74)$6,937158,775($0.56)($0.99)$67,925
Transco Zone 5 South (DKR)3,150$1.98$6.04($12,737)12,165$0.62$2.31($20,356)
Total Financial Basis Hedges90,225($7,022)382,043$76,931
Total Projected Realized Loss($101,719)($363,297)
Note: Forward market prices, hedged volumes, and hedge prices are as of 1/5/2023. Anticipated hedging activity is not included in projections.
(1) January 2023 prices are settled.
(2) Forecasted Gain/(Loss) amounts are based on sum of current monthly hedge positions vs. strip.
Actual Change in Derivatives
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Realized Loss($360)($651)($531)($271)($1,813)($400)
Unrealized Gain (Loss)$1,138($411)($122)($1,456)($851)$780
Gain (Loss) on Commodity Derivative Instruments$778($1,062)($653)($1,727)($2,664)$380

4


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Dollars in thousands, except per share data
Revenue and Other Operating Income (Loss):Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Natural Gas, NGL and Oil Revenue$776,740$1,127,341$1,003,406$744,625$3,652,112$847,340
Gain (Loss) on Commodity Derivative Instruments777,615(1,062,353)(652,643)(1,726,394)(2,663,775)379,982
Purchased Gas Revenue61,42131,73846,55245,841185,55233,212
Other Revenue and Operating Income21,05420,33523,10322,83087,32230,656
Total Revenue and Other Operating Income (Loss)1,636,830 117,061 420,418 (913,098)1,261,211 1,291,190 
Costs and Expenses:
Operating Expense
Lease Operating Expense17,73919,23914,28215,39866,65815,547
Transportation, Gathering and Compression96,38596,63288,35788,286369,66091,754
Production, Ad Valorem, and Other Fees11,59913,4819,9589,92744,96511,086
Depreciation, Depletion and Amortization112,245114,167116,180118,623461,215133,833
Exploration and Production Related Other Costs1,2126854,7121,6898,29812,548
Purchased Gas Costs62,21732,30946,04144,816185,38332,622
Selling, General, and Administrative Costs31,96127,72230,45431,560121,69735,908
Other Operating Expense9,818 21,238 20,539 12,170 63,765 16,203 
Total Operating Expense343,176325,473330,523322,4691,321,641349,501
Other Expense
Other Expense (Income)3,4941,9225,179(736)9,8592,340
(Gain) Loss on Assets Sales and Abandonments, net(1,426)12,077(6,240)(13,395)(8,984)(19,705)
Loss on Debt Extinguishment199,95312,98122,95315,084
Interest Expense35,218 34,351 31,051 27,069 127,689 37,264 
Total Other Expense37,30558,30342,97112,938151,51734,983
Total Costs and Expenses380,481 383,776 373,494 335,407 1,473,158 384,484 
Earnings (Loss) Before Income Tax1,256,349(266,715)46,924(1,248,505)(211,947)906,706
Income Tax Expense (Benefit)81,770 160,357 13,567 (325,564)(69,870)276,394 
Net Income (Loss)$1,174,579($427,072)$33,357($922,941)($142,077)$630,312
Earnings (Loss) per Share
Basic$6.64$(2.28)$0.17$(4.62)$(0.75)$3.02
Diluted$5.68$(2.28)$0.15$(4.62)$(0.75)$2.90
Weighted-Average Shares OutstandingQ4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Weighted-Average Shares of Common Stock Outstanding176,916,881 187,511,940 194,021,639 199,854,257 189,507,682 208,454,502 
Effect of Diluted Shares*30,127,743 — 30,387,055 — — 8,834,883 
Weighted-Average Diluted Shares of Common Stock Outstanding207,044,624 187,511,940 224,408,694 199,854,257 189,507,682 217,289,385 
*During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards and the potential share settlement impact related to CNX’s Convertible Notes are antidilutive.




5


CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dollars in thousands31-Dec-2230-Sep-2230-Jun-2231-Mar-2231-Dec-21
ASSETS
Current Assets:
Cash and Cash Equivalents$21,321$1,594$238$8,570$3,565
Accounts and Notes Receivable:
Trade, net348,458 479,088 447,464 263,126 330,122 
Other Receivables, net6,184 5,436 6,010 5,134 8,924 
Supplies Inventories27,156 19,650 14,490 6,469 6,147 
Recoverable Income Taxes— — — — 72 
Derivative Instruments154,474 200,598 137,492 119,838 95,002 
Prepaid Expenses16,211 17,373 12,503 13,739 15,975 
Total Current Assets573,804 723,739 618,197 416,876 459,807 
Property, Plant and Equipment:
Property, Plant and Equipment11,907,698 11,738,308 11,606,088 11,484,450 11,362,102 
Less-Accumulated Depreciation, Depletion and Amortization4,811,189 4,704,665 4,593,364 4,488,326 4,372,619 
Total Property, Plant and Equipment—Net7,096,509 7,033,643 7,012,724 6,996,124 6,989,483 
Other Non-Current Assets:
Operating Lease Right-of-Use Assets174,849 187,376 176,613 42,162 56,022 
Derivative Instruments244,931 258,539 420,291 281,213 131,994 
Goodwill323,314 323,314 323,314 323,314 323,314 
Other Intangible Assets76,990 78,628 80,266 81,904 83,543 
Deferred Income Taxes— — 14,107 28,526 — 
Other Non-Current Assets25,376 27,887 50,378 53,405 56,588 
Total Other Non-Current Assets845,460 875,744 1,064,969 810,524 651,461 
TOTAL ASSETS$8,515,773$8,633,126$8,695,890$8,223,524$8,100,751
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable$191,343$169,406$154,449$120,513$121,751
Derivative Instruments782,653 1,407,892 1,210,715 1,411,964 521,598 
Current Portion of Finance Lease Obligations881 686 637 603 555 
Current Portion of Long-Term Debt— 323,122 322,622 336,083 — 
Current Portion of Operating Lease Obligations47,436 48,710 40,951 10,003 22,940 
Other Accrued Liabilities290,491 308,212 302,599 248,176 287,732 
Total Current Liabilities1,312,804 2,258,028 2,031,973 2,127,342 954,576 
Non-Current Liabilities:
Long-Term Debt2,205,735 1,920,440 1,907,074 1,890,790 2,214,121 
Finance Lease Obligations1,970 1,375 1,342 1,304 1,218 
Operating Lease Obligations132,105 143,291 139,428 32,340 33,672 
Derivative Instruments1,517,021 2,012,326 1,899,736 1,421,373 687,354 
Deferred Income Taxes232,280 146,621 — — 328,601 
Asset Retirement Obligations89,079 87,243 88,463 89,403 88,859 
Other Non-Current Liabilities74,318 86,814 90,850 91,460 92,077 
Total Non-Current Liabilities4,252,508 4,398,110 4,126,893 3,526,670 3,445,902 
TOTAL LIABILITIES5,565,312 6,656,138 6,158,866 5,654,012 4,400,478 
Stockholders' Equity:
Common Stock1,712 1,835 1,918 1,955 2,039 
Capital in Excess of Par Value2,506,269 2,602,697 2,665,440 2,691,950 2,834,863 
Preferred Stock— — — — — 
Retained Earnings (Accumulated Deficit)448,993 (613,426)(116,081)(110,005)877,894 
Accumulated Other Comprehensive Loss(6,513)(14,118)(14,253)(14,388)(14,523)
TOTAL STOCKHOLDERS' EQUITY2,950,461 1,976,988 2,537,024 2,569,512 3,700,273 
TOTAL LIABILITIES AND EQUITY$8,515,773$8,633,126$8,695,890$8,223,524$8,100,751




6


CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Dollars in thousands
Cash Flows from Operating Activities:Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Net Income (Loss)$1,174,579($427,072)$33,357($922,941)($142,077)$630,312
Depreciation, Depletion and Amortization112,245114,167116,180118,623461,215133,833
Amortization of Deferred Financing Costs2,2932,0482,0732,0428,4568,904
Stock-Based Compensation1,4933,8293,7227,33116,3752,782
(Gain) Loss on Asset Sales and Abandonments, net(1,426)12,077(6,240)(13,395)(8,984)(19,705)
Loss on Debt Extinguishment199,95312,98122,95315,084
(Gain) Loss on Commodity Derivative Instruments(777,615)1,062,353652,6431,726,3942,663,775(379,982)
Gain on Other Derivative Instruments(300)(2,694)(2,131)(5,223)(10,348)(2,410)
Net Cash Paid in Settlement of Commodity Derivative Instruments(282,897)(651,247)(530,129)(270,842)(1,735,115)(399,971)
Deferred Income Taxes83,076160,68014,370(334,184)(76,058)276,772
Other1,6191,6466231,7005,588(281)
Changes in Operating Assets:
Accounts and Notes Receivable129,759(31,478)(185,196)66,577(20,338)(75,211)
Recoverable Income Taxes7272(71)
Supplies Inventories(7,505)(5,160)(8,021)(322)(21,008)(661)
Prepaid Expenses1,181(4,840)1,0412,366(252)(2,844)
Changes in Other Assets(143)19,8001,52032221,499(22,767)
Changes in Operating Liabilities:
Accounts Payable25,947(684)30,541(2,032)53,772(3,922)
Accrued Interest16,550(14,373)12,128(13,595)71023,819
Other Operating Liabilities(36,289)19,20242,906(26,086)(267)50,537
Changes in Other Liabilities(315)(3,825)(402)(412)(4,954)18,853
Net Cash Provided by Operating Activities442,271264,382191,966336,3951,235,014253,071
Cash Flows from Investing Activities:
Capital Expenditures(173,217)(133,553)(136,668)(122,316)(565,754)(116,711)
Proceeds from Asset Sales6,8894,0417,10719,42337,46021,017
Net Cash Used in Investing Activities(166,328)(129,512)(129,561)(102,893)(528,294)(95,694)
Cash Flows from Financing Activities:
Payments on Long-Term Notes(358,750)(26,969)(385,719)(246,853)
Net Proceeds from (Payments on) CNXM Revolving Credit Facility5,550(40,150)(21,900)25,200(31,300)39,000
Net (Payments on) Proceeds from CNX Revolving Credit Facility(44,650)(89,000)37,650(96,000)(192,000)(33,350)
Proceeds from Issuance of CNX Senior Notes493,750493,750
Payments on Miscellaneous Borrowings(191)(163)(157)(154)(665)(137)
Proceeds from Issuance of Common Stock781353766081,197103
Shares Withheld for Taxes(180)(7)(83)(5,582)(5,852)(8)
Purchases of Common Stock(215,106)(138,052)(59,494)(152,473)(565,125)(120,825)
Debt Issuance and Financing Fees(1,717)(1,277)(160)(96)(3,250)(12,493)
Net Cash Used in Financing Activities(256,216)(133,514)(70,737)(228,497)(688,964)(374,563)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash19,7271,356(8,332)5,00517,756(217,186)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period1,5942388,5703,5653,565220,751
Cash, Cash Equivalents, and Restricted Cash at End of Period$21,321$1,594$238$8,570$21,321$3,565





7


MARKET MIX AND NATURAL GAS PRICE RECONCILIATION
2023E
Gas Sold (%)(1)
Basis(2)
Eastern Gas-South3%($0.99)
ETNG Mainline6%$2.11
TCO Pool25%($0.79)
TETCO ELA & WLA5%($0.29)
TETCO M36%$0.78
TETCO M235%($0.99)
Michcon12%($0.30)
Physical basis sales8%($0.22)
Weighted Average Basis100%($0.48)
NYMEX$3.80
Weighted Average Basis (Not considering hedging)($0.48)
Realized Price (per MMBtu)$3.32
     Conversion Factor (MMBtu/Mcf)1.079
Realized Price Before Financial Hedging (per Mcf)$3.58
(1) Individual market percentages exclude physical basis sales, which are shown separately.
(2) Forward market basis prices as of 1/5/2023.

8


PRICE AND COST DATA (PER MCFE) - NON-GAAP
Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Average Sales Price - Natural Gas$5.54$7.82$7.02$4.76$6.27$5.24
Average (Loss) Gain on Commodity Derivative Instruments - Cash Settlement- Gas($2.78)($4.79)($3.98)($1.91)($3.35)($2.70)
Average Sales Price - Oil and Condensate*$12.34$14.74$16.04$12.84$13.65$11.07
Average Sales Price - NGLs*$4.92$6.05$7.21$7.62$6.36$6.80
Average Sales Price of Natural Gas, NGL and Oil, including Cash Settlement
$2.96$3.25$3.32$3.14$3.17$2.83
Lease Operating Expense (LOE)$0.13$0.13$0.10$0.10$0.11$0.10
Production, Ad Valorem, and Other Fees$0.08$0.09$0.07$0.07$0.08$0.07
Transportation, Gathering and Compression$0.69$0.66$0.62$0.59$0.64$0.58
Depreciation, Depletion and Amortization (DD&A)$0.77$0.76$0.79$0.76$0.77$0.83
Total Natural Gas, NGL and Oil Production Costs
$1.67$1.64$1.58$1.52$1.60$1.58
Total Natural Gas, NGL and Oil Production Cash Costs, before DD&A
$0.90$0.88$0.79$0.76$0.83$0.75
Natural Gas, NGL and Oil Production Cash Margin, before DD&A$2.06$2.37$2.53$2.38$2.34$2.08
Fully Burdened Cash Costs, before DD&A(1)
$1.29$1.29$1.22$1.03$1.20$1.07
Fully Burdened Cash Margin, before DD&A$1.67$1.96$2.10$2.11$1.97$1.76
Note: "Total Natural Gas, NGL and Oil Production Costs" excludes Selling, General, and Administration and Other Operating Expenses.
*NGLs, Oil, and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices.
(1) Fully burdened cash costs include production cash costs, selling, general and administrative (SG&A) cash costs, other operating cash expense, other cash (income) expense, other revenue and operating income, and cash interest expense. Q4 2022, Q3 2022, Q2 2022, Q1 2022, YTD 2022 and Q4 2021 total fully burdened cash costs exclude a (gain)/loss on asset sales of ($0.01) per Mcfe, $0.08 per Mcfe, ($0.04) per Mcfe, ($0.09) per Mcfe, ($0.02) per Mcfe and ($0.12) per Mcfe, respectively. Q4 2022, Q3 2022, Q2 2022, Q1 2022, YTD 2022 and Q4 2021 exclude unrealized losses/(gains) on interest rate swaps and noncash amortization of $0.01 per Mcfe, $0.00 per Mcfe, $0.00 per Mcfe, ($0.02) per Mcfe, $0.00 per Mcfe and $0.04 per Mcfe, respectively. Q4 2022, Q3 2022, Q2 2022, YTD 2022 and Q4 2021 exclude loss on debt extinguishment of $0.00 per Mcfe, $0.07 per Mcfe, $0.09 per Mcfe, $0.04 per Mcfe and $0.10 per Mcfe, respectively.
Natural Gas Price ReconciliationQ4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
NYMEX Natural Gas ($/MMBtu)$6.26$8.20$7.17$4.95$6.64$5.83
Average Differential(1.17)(1.01)(0.73)(0.58)(0.88)(1.02)
BTU Conversion (MMBtu/Mcf)*0.450.630.580.390.510.43
(Loss) Gain on Commodity Derivative Instruments-Cash Settlement(2.78)(4.79)(3.98)(1.91)(3.35)(2.70)
Realized Gas Price per Mcf$2.76$3.03$3.04$2.85$2.92$2.54
*Conversion factor1.091.091.091.091.091.09










9


GUIDANCE
($ in millions)2023E
LowHigh
Production Volumes (Bcfe)555-575
% Liquids7%‘-8%
% of Natural Gas Hedged82%
Prices on Open Volumes(1)
Natural Gas NYMEX ($/MMBtu)$3.80
Natural Gas Differential ($/MMBtu)($0.48)
NGL Realized Price ($/Bbl)~$21.00
($ in millions)
Adjusted EBITDAX(2)
$1,100-$1,250
Capital Expenditures
Drilling & Completions (D&C)$430‘-$475
Non-D&C$120-$160
Discretionary Capital$25‘-$40
Total Capital Expenditures$575-$675
($ in millions)
Free Cash Flow (FCF)(2)
~$375
FCF Per Share(2)(3)
~$2.20
(1) Forward market prices for 2023 guidance as of 1/5/2023.
(2) Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions. FCF for previous and updated guidance includes approximately $40 million in expected asset sales in 2023.
(3) 2023 FCF per share based on shares outstanding of 170,126,528, as of 1/17/2023.

2023E ACTIVITY SUMMARYTIL
Average Lateral Length(1)
SWPA CentralMarcellus2314,500
Utica413,600
CPAMarcellus38,800
Utica--
Total30-
(1) Measured in lateral feet from perforation to perforation.






10


Non-GAAP Measures (Definitions, Purpose, and Reconciliations)

CNX's management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful for investors in analyzing the company. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating CNX because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.

Definitions: EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below. Although EBIT, EBITDAX, and adjusted EBITDAX are not measures of performance calculated in accordance with generally accepted accounting principles, management believes that they are useful to an investor in evaluating CNX Resources because they are widely used to evaluate a company's operating performance. We exclude stock-based compensation from adjusted EBITDAX because we do not believe it accurately reflects the actual operating expense incurred during the relevant period and may vary widely from period to period irrespective of operating results. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT, EBITDAX or adjusted EBITDAX identically, the presentation here may not be comparable to similarly titled measures of other companies. Sales of natural gas, NGL and oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Natural gas, NGL and oil production costs excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations. Adjusted Net Income is defined as net income after adjusting for the discrete items listed below as well as the tax effectiveness. Operating Margins are defined as adjusted EBIT divided by Total Revenue after adjusting for unrealized loss on commodity derivative instruments. Adjusted Trailing-Twelve-Months (TTM) EBITDAX is defined as EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below. Cash Operating Margins are defined as adjusted EBITDA divided by total Revenue after adjusting for unrealized loss on commodity derivative instruments. Net Debt is defined as total long-term debt minus cash and cash equivalents. Adjusted Net Debt is defined as total long-term debt, plus the historical impact of recent accounting pronouncement, minus cash and cash equivalents. Free Cash Flow (FCF) is defined as operating cash flow minus capex plus proceeds from asset sales. Organic FCF is defined as operating cash flow minus capex.

Reconciliations of EBIT, EBITDAX, adjusted EBITDAX, adjusted EBIT, adjusted EBITDA, sales of natural gas, NGL and oil, including cash settlements, natural gas, NGL and oil production costs, adjusted net income, operating margins, cash operating margins, net debt, adjusted net debt, adjusted TTM EBITDAX, FCF and organic FCF to the most directly comparable GAAP financial measures are as follows:






11




Non-GAAP Measures
Sales of Natural Gas, NGL and Oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Sales of Natural Gas, NGL and Oil, including cash settlements is a non-GAAP measure that excludes purchased gas revenue and other revenue and operating income, which are not directly related to CNX’s natural gas producing activities. Natural Gas, NGL and Oil Production Costs is a non-GAAP measure that excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations (See Note 21 - Segment Information of the Notes to the Audited Consolidated Financial Statements in Item 8 of CNX's 2021 Annual Report on Form 10-K as filed with the SEC on February 10, 2022). These expenses include, but are not limited to, interest expense and other corporate expenses such as selling, general and administrative costs in the current periods presented.
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Total Revenue and Other Operating Income (Loss)$1,637$117$420($913)$1,261$1,291
Add (Deduct):
Purchased Gas Revenue(62)(32)(46)(46)(186)(33)
(Gain) Loss on Commodity Derivative Instruments (1,138)411 122 1,456 851 (780)
Other Revenue and Operating Income(21)(20)(23)(23)(87)(30)
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure$416$476$473$474$1,839$448
Total Operating Expense$343$326$330$322$1,321$349
Add (Deduct):
Depreciation, Depletion and Amortization (DD&A) - Corporate (4)(4)(2)(3)(13)(1)
Exploration and Production Related Other Costs(1)(1)(5)(2)(9)(13)
Purchased Gas Costs(62)(32)(46)(45)(185)(32)
Selling, General and Administrative Costs(33)(28)(30)(31)(122)(36)
Other Operating Expense(8)(21)(21)(12)(62)(16)
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1
$235$240$226$229$930$251
1 Natural Gas, NGL and Oil production costs consists primarily of lease operating expense, production ad valorem and other fees, transportation, gathering and compression and production related depreciation, depletion and amortization.









12


Non-GAAP Measures
EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below.
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Net Income (Loss)$1,175($427)$33($923)($142)$630
Interest Expense35 35 31 27 128 37 
Income Tax Expense (Benefit)82 160 14 (326)(70)277 
Earnings (Loss) Before Interest & Taxes (EBIT)1,292 (232)78 (1,222)(84)944 
Depreciation, Depletion & Amortization112114 116 119 461 133 
Exploration Expense113 
Earnings (Loss) Before Interest, Taxes, DD&A and Exploration (EBITDAX)$1,405($117)$199($1,101)$386$1,090
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments(1,138)411 122 1,456 851 (780)
Stock-Based Compensation16 
Loss on Debt Extinguishment— 10 13 — 23 15 
Loss on Abandonment16 — — 20 — 
Virginia Flood Expense— — — 
Severance— — — 
Total Pre-tax Adjustments(1,131)443 139 1,463 914 (762)
Adjusted EBITDAX$274$326$338$362$1,300$328
Adjusted Net Income is defined as net income after adjusting for the discrete items listed below as well as the related tax effect.
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Net Income (Loss) from EBITDAX Reconciliation$1,175($427)$33($923)($142)$630
Adjustments:
Total Pre-tax Adjustments from EBITDAX Reconciliation(1,131)443 139 1,463 914 (762)
Tax Effect of Adjustments295 (116)(36)(382)(239)199 
Adjusted Net Income (Loss)$339($100)$136$158$533$67







13


Non-GAAP Measures
Operating Margin: Adjusted EBIT divided by Total Revenue and Other Operating Income (Loss) after adjusting for unrealized loss (gain) on commodity derivative instruments.
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Total Revenue and Other Operating Income (Loss) $1,637$117$420($913)$1,261$1,291
Net Income (Loss)$1,175($427)$33($923)($142)$630
Interest Expense3535312712837
Income Tax Expense (Benefit)8216014(326)(70)277
Earnings (Loss) Before Interest & Taxes (EBIT)1,292(232)78(1,222)(84)944
Depreciation, Depletion & Amortization112114116119461133
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA)$1,404($118)$194($1,103)$377$1,077
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments($1,138)$411$122$1,456$851($780)
Total Adjustments($1,138)$411$122$1,456$851($780)
Total Revenue and Other Operating Income (Loss) Minus Unrealized (Gain) Loss on Commodity Derivative Instruments$499$528$542$543$2,112$511
Adjusted EBIT$154$179$200$234$767$164
Operating Margin31 %34 %37 %43 %36 %32 %
















14


Non-GAAP Measures
Cash Operating Margin: Adjusted EBITDA divided by Total Revenue after adjusting for unrealized loss (gain) on commodity derivative instruments, stock based compensation and the other discrete items listed below.
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022Q4-2021
Total Revenue and Other Operating Income (Loss)$1,637$117$420($913)$1,261$1,291
Net Income (Loss)$1,175($427)$33($923)($142)$630
Interest Expense3535312712837
Income Tax Expense (Benefit)8216014(326)(70)277
Earnings (Loss) Before Interest & Taxes (EBIT)1,292(232)78(1,222)(84)944
Depreciation, Depletion & Amortization112114116119461133
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA)$1,404($118)$194($1,103)$377$1,077
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments(1,138)$411$122$1,456$851($780)
Stock-Based Compensation1447162
Loss on Abandonment41620
Virginia Flood Expense123
Loss on Debt Extinguishment10132315
Severance 11
Total Adjustments($1,131)$443$139$1,463$914($763)
Total Revenue and Other Operating Income (Loss) Minus Unrealized (Gain) Loss on Commodity Derivative Instruments$499$528$542$543$2,112$511
Adjusted EBITDA$273$325$333$360$1,291$314
Cash Operating Margin55 %62 %61 %66 %61 %61 %














15


Non-GAAP Measures
Management uses net debt to determine the company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt is useful to investors in determining the company's leverage ratio since the company could choose to use its cash and cash equivalents to retire debt.
Net Debt: Total long-term debt minus cash and cash equivalents.
Adjusted Net Debt : Total long-term debt, plus the historical impact of recent accounting pronouncement, minus cash and cash equivalents.
(Dollars in millions)
Net Debt31-Dec-2230-Sep-2230-Jun-2231-Mar-2231-Dec-2130-Sep-2130-Jun-2131-Mar-2131-Dec-2030-Sep-20
Total Long-Term Debt (GAAP)(1)
$2,206$2,244$2,230$2,227$2,214$2,436$2,289$2,368$2,424$2,600
Less: Cash and Cash Equivalents21294221453522156
Net Debt$2,185$2,242$2,230$2,218$2,210$2,215$2,244$2,333$2,402$2,444
(1) Includes current portion
(Dollars in millions)
Adjusted Net Debt 31-Dec-2230-Sep-2230-Jun-2231-Mar-2231-Dec-2130-Sep-2130-Jun-2131-Mar-2131-Dec-2030-Sep-20
Total Long-Term Debt (GAAP)(1)
$2,206$2,244$2,230$2,227$2,214$2,436$2,289$2,368$2,424$2,600
Plus: Impact of Recent Accounting Pronouncement(2)
8286909498101
Less: Cash and Cash Equivalents21294221453522156
Adjusted Net Debt $2,185$2,242$2,230$2,218$2,292$2,301$2,334$2,427$2,500$2,545
(1) Includes current portion
(2) On January 1, 2022, the Company adopted Accounting Standards Update (ASU) 2020-06 - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity and upon adoption long-term debt increased by $82MM (See Note 12 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of CNX’s September 30, 2022 Form 10-Q for additional information). As this adjustment was recorded on a prospective basis, Management believes that presenting investors with the net debt on a historical basis would be beneficial.
Adjusted TTM EBITDAX: EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below.
Three Months EndedTwelve Months Ended
(Dollars in millions)31-Mar-2230-Jun-2230-Sep-2231-Dec-2231-Dec-22
Net (Loss) Income($923)$33($427)$1,175($142)
Interest Expense27313535128
Income Tax (Benefit) Expense(326)1416082(70)
(Loss) Earnings Before Interest & Taxes (EBIT)(1,222)78(232)1,292(84)
Depreciation, Depletion & Amortization119116114112461
Exploration Expense25119
(Loss) Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)(1,101)199(117)1,405386
Adjustments:
Unrealized Loss (Gain) on Commodity Derivative Instruments1,456122411(1,138)851
Stock Based Compensation744116
Loss on Debt Extinguishment131023
Loss on Abandonment16420
Virginia Flood Expense213
Severance11
Total Pre-tax Adjustments1,463139443(1,131)914
Adjusted EBITDAX $362$338$326$274$1,300

16


Non-GAAP Measures
The Company's management believes that the following measures provide useful information to external users of the Company's consolidated financial statements, such as industry analysts, lenders and ratings agencies. Free cash flow and organic free cash flow should not be considered as alternatives to net cash provided by operating activities or any other measure of liquidity presented in accordance with GAAP.                                    
Free Cash Flow (FCF): Operating cash flow minus capex plus proceeds from asset sales.
Organic Free Cash Flow (FCF): Operating cash flow minus capex.
2022 Free Cash Flow
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022
Net Cash Provided by Operating Activities$442$265$192$336$1,235
Capital Expenditures(173)(134)(137)(122)(566)
Proceeds from Asset Sales7472038
Free Cash Flow$276$135$62$234$707
2022 Organic Free Cash Flow
(Dollars in millions)Q4-2022Q3-2022Q2-2022Q1-2022YTD-2022
Net Cash Provided by Operating Activities$442$265$192$336$1,235
Capital Expenditures(173)(134)(137)(122)(566)
Organic Free Cash Flow$269$131$55$214$669
2021 Free Cash Flow
(Dollars in millions)Q4-2021Q3-2021Q2-2021Q1-2021YTD-2021
Net Cash Provided by Operating Activities$254$215$239$219$927
Capital Expenditures(117)(97)(129)(123)(466)
Proceeds from Asset Sales21127545
Free Cash Flow$158$130$117$101$506
2021 Organic Free Cash Flow
(Dollars in millions)Q4-2021Q3-2021Q2-2021Q1-2021YTD-2021
Net Cash Provided by Operating Activities$254$215$239$219$927
Capital Expenditures(117)(97)(129)(123)(466)
Organic Free Cash Flow$137$118$110$96$461
2020 Free Cash Flow
(Dollars in millions)Q4-2020Q3-2020Q2-2020Q1-2020YTD-2020
Net Cash Provided by Operating Activities$161$223$144$267$795
Capital Expenditures(92)(108)(135)(152)(487)
Proceeds from Asset Sales166121448
Free Cash Flow$85$121$21$129$356









17


Risk Factors

This presentation, including the oral statements made in connection herewith, contains forward-looking statements estimates and projections within the meaning of the federal securities laws. Statements that are not historical are forward-looking and may include our operational and strategic plans; estimates of gas reserves and resources; projected timing and rates of return of future investments; and projections and estimates of future production revenues, income and capital spending. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements estimates and projections. Investors should not place undue reliance on forward-looking statements as a prediction of future actual results. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements, and we caution you not to rely on them unduly.

Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions "Forward- Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (SEC) as supplemented by our quarterly reports on Form 10-Q and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; the failure to realize the anticipated costs savings, synergies and other benefits of CNX’s purchase of the outstanding interests in CNXM not already owned by CNX; local, regional and national economic conditions and the impact they may have on our customers; the impact of outbreaks of communicable diseases such as COVID-19 on business activity, our operations and national and global economic conditions, generally; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; the financial condition of our customers; any non-performance by customers of their contractual obligations; changes in customer, employee or supplier relationships resulting from the proposed transaction; and changes in safety, health, environmental and other regulations.

18
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Cover Page Cover Page
Jan. 26, 2023
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 26, 2023
Entity Registrant Name CNX Resources Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-14901
Entity Tax Identification Number 51-0337383
Entity Address, Address Line One CNX Center
Entity Address, Address Line Two 1000 Horizon Vue Drive
Entity Address, City or Town Canonsburg
Entity Address, State or Province PA
Entity Address, Postal Zip Code 15317
City Area Code 724
Local Phone Number 485-4000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001070412
Amendment Flag false
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock ($.01 par value)
Trading Symbol CNX
Security Exchange Name NYSE
Preferred Share Purchase Rights  
Entity Information [Line Items]  
Title of 12(b) Security Preferred Share Purchase Rights
Security Exchange Name NYSE
No Trading Symbol Flag true
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