CNX Resources Corporation
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ITEM 1.Business
General
CNX Resources Corporation (“CNX,” the “Company,” or “we,” “us,” or “our”) is a premier independent ultra-low carbon intensity natural gas development, production, midstream and technology company centered in the Appalachian Basin. The majority of our operations are centered on unconventional shale formations, primarily the Marcellus Shale and Utica Shale, in Pennsylvania, Ohio and West Virginia. Additionally, we operate and develop Coalbed Methane (CBM) properties in Virginia. We believe that our extensive held-by-production acreage position and development inventory, combined with our regional operating expertise, extensive data set from development and non-operational participation wells, midstream infrastructure ownership, low-cost operations and legacy surface acreage position provide us with significant competitive advantages that position us for long-term value creation.
CNX's Strategy and Corporate Values
CNX’s strategy is to use our substantial asset base, leading core operational competencies, technology development and innovation, and astute capital allocation methodologies to responsibly develop our resources and create long-term value for our shareholders. Our mission is to empower our team to embrace and drive innovative change that creates long-term per share value for our investors, enhances our communities and delivers energy solutions for today and tomorrow.
CNX defines itself through its corporate values that serve as our road map and guide every aspect of our business as we strive to achieve our corporate mission:
•Responsibility: Be a safe and compliant operator; be a trusted community partner and respected corporate citizen; act with pride and integrity;
•Ownership: Be accountable for our actions and learn from our outcomes, both positive and negative; be calculated risk-takers and seek creative ways to solve problems; be prudent capital allocators; and
•Excellence: Be a lean, efficient, nimble organization; be a disciplined, reliable, performance-driven company; be an inclusive team treating each other with fairness and respect.
These values are the foundation of CNX's identity and are the basis for how management defines continued success. With the benefit of a more than 160-year legacy and a substantial asset base amassed over many generations, the Company deploys a strategy focused on responsibly developing its resources to create long-term per share value for its shareholders, as well as enhancing the communities where it operates.
CNX believes that natural gas is central to a low-cost, reliable, secure, lower-carbon energy future that benefits American consumers, workers and the environment. CNX has the benefit of having its operations centered in the Appalachian Basin, which the Company believes is one of the largest, most efficient, and environmentally sustainable sources of natural gas in the world.
2025 Operational Highlights and Outlook
•Over the past ten years, CNX's total sales volumes have grown by approximately 91% to a total of 629 net Bcfe in 2025;
•Total average production of 1,723,178 Mcfe per day in 2025;
•92% Natural Gas, 8% Liquids; and
•94% Shale, 6% coalbed methane.
At December 31, 2025, our proved natural gas, NGL, condensate and oil reserves (collectively, “natural gas reserves”) had the following characteristics:
•9.7 Tcfe of proved reserves;
•89.5% natural gas;
•72.2% proved developed; and
•99.1% operated.
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On January 27, 2025, the Company completed the acquisition of the natural gas upstream and associated midstream business of Apex Energy II, LLC for total cash consideration of approximately $518 million. See Note 4 – Acquisitions and Dispositions in the Notes to the Audited Consolidated Financial Statements in Item 8 of this Form 10-K for more information.
In 2026, CNX expects capital expenditures to be between $556 million and $586 million. Included in CNX’s 2026 capital expenditures is the first of three annual payments of $16 million associated with an agreement that grants CNX the right to acquire Utica Shale oil and gas rights that sit beneath the legacy Apex Energy footprint. The Company continuously evaluates multiple factors to determine activity throughout the year, and as such, may update guidance accordingly.
DETAIL OF OPERATIONS
Our operations include the following plays:
Shale
Our Shale properties represent our primary operating and growth area in terms of reserves, production, and capital investment. We have rights to extract natural gas from Shale formations in Pennsylvania, West Virginia, and Ohio from approximately 557,000 net Marcellus Shale acres and approximately 612,000 net Utica Shale acres at December 31, 2025. Approximately 341,000 Utica Shale acres coincide with Marcellus Shale acreage in Pennsylvania, West Virginia, and Ohio.
The Upper Devonian Shale formation, which includes both the Burkett Shale and Rhinestreet Shale, lies above the Marcellus Shale formation in southwestern Pennsylvania and northern West Virginia. The Company holds approximately 52,000 acres of incremental Upper Devonian acres; however, these acres have historically not been disclosed separately as they generally coincide with our Marcellus acreage, and we have no current drilling program targeting this formation.
Coalbed Methane (CBM)
We have rights to extract CBM in Virginia from approximately 283,000 net CBM acres at December 31, 2025. We extract CBM natural gas primarily from the Pocahontas #3 seam. CNX also has the right to capture Remediated Mine Gas (RMG) from active and abandoned mines in this region. The RMG we capture would otherwise be vented into the atmosphere as third-party mining operations progress.
CNX also has rights to extract CBM from approximately 1,862,000 net CBM acres, and rights to capture RMG from various active and abandoned mines in other states including West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico; however, although the Company has very limited activity in some of these areas, there are no current plans to drill additional CBM wells or capture RMG in these areas. The Company may reevaluate plans as opportunities present themselves.
Other Gas
We have rights to extract natural gas from other Shale and shallow oil and gas formations primarily in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia from approximately 946,000 net acres at December 31, 2025. The majority of our shallow oil and gas leasehold position is held by third-party production and all of it is extensively overlain by existing third-party natural gas gathering and transmission infrastructure.
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Summary of Properties as of December 31, 2025
| Shale | CBM | Other | ||||||||||||||||||||
| Segment | Segment | Segment | Total | |||||||||||||||||||
Estimated Net Proved Reserves (MMcfe) | 8,844,273 | 812,626 | 5,245 | 9,662,144 | ||||||||||||||||||
Percent Developed (1) | 73 | % | 61 | % | 100 | % | 72 | % | ||||||||||||||
| Net Producing Wells (including oil and gob wells) | 665 | 3,784 | 39 | 4,488 | ||||||||||||||||||
| Net Acreage Position: | ||||||||||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements and related notes included elsewhere in this Form 10-Q. The information provided below supplements, but does not form part of, CNX's financial statements. This discussion contains forward-looking statements that are based on the current views and beliefs of management, as well as assumptions and estimates made by management. Actual results could differ materially from any such forward-looking statements as a result of various risk factors, including those that may not be in the control of management. For further information on items that could impact future operating performance or financial condition, please see "Part I. Item 1A. Risk Factors" and the section entitled "Forward-Looking Statements" contained in the 2025 Form 10-K. CNX does not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.
General
CNX continually monitors factors that could cause actual results of operations to differ from historical results or current expectations. Examples include global events such as heightened geopolitical developments, including in the Middle East, uncertainties in global financial markets, and announcements by the Organization of the Petroleum Exporting Countries that impact oil production, all of which have contributed to increased volatility in global commodity prices. These and other factors could affect the Company’s operations, earnings and cash flows for any period and could cause such results to differ materially from those of prior periods. The results presented in this Form 10-Q are not necessarily indicative of future operating results.
Natural Gas, NGLs and Oil Pricing
Prices for natural gas, NGLs and oil that CNX produces significantly impact revenue and cash flows. In the current economic environment, CNX expects that commodity prices for some or all of the commodities we produce will remain volatile. In order to manage the market risk exposure of volatile natural gas prices in the future, CNX enters into various physical natural gas supply transactions with both gas marketers and end users for terms varying in length as well as financial hedges. However, this market volatility is beyond our control and may adversely impact our business, financial condition, results of operations and future cash flows.
Inflation
The inflationary environment over the last few years, primarily related to steel, diesel fuel and labor, continues to present risk for CNX and the broader natural gas industry. If inflation were to increase materially for any extended period of time, and CNX is unable to successfully mitigate the impact, our costs could increase further, thus having a greater impact on our financial position. CNX remains committed to our ongoing efforts to increase the efficiency of our operations and improve costs, which may, in part, offset any additional potential cost increases from inflation.
Hedging Update
Total hedged natural gas production for the third quarter of 2026 is 116.0 Bcf. CNX's annual gas hedge position is shown in the table below:
| 2026 | 2027 | |||||||||||
| Volumes Hedged (Bcf), as of 7/8/26 | 460.4(1) | 402.4 | ||||||||||
1Includes actual settlements of 207.9 Bcf.
CNX's hedged gas volumes include a combination of NYMEX financial hedges, index (NYMEX and basis) financial hedges, and physical fixed price sales. In addition, to protect the NYMEX hedge volumes from basis exposure, CNX enters into basis-only financial hedges and physical sales with fixed basis at certain sales points. CNX has also entered into a nominal quantity of NGL hedges. See Quantitative and Qualitative Disclosures About Market Risk in Item 3 of this Form 10-Q for additional information.
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Results of Operations - Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
Net Income
CNX reported net income of $203 million, or earnings per diluted share of $1.32, for the three months ended June 30, 2026, compared to net income of $433 million, or earnings per diluted share of $2.53, for the three months ended June 30, 2025.
Included in the earnings for the three months ended June 30, 2026 was an unrealized gain on commodity derivative instruments of $131 million and a net loss on asset sales and abandonments of $1 million. Included in the earnings for the three months ended June 30, 2025 was an unrealized gain on commodity derivative instruments of $456 million and a net gain on asset sales and abandonments of $18 million. See Note 4 – Acquisitions and Dispositions in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information related to the loss (gain) on asset sales and abandonments.
Non-GAAP Financial Measures
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 GAAP, management believes that these financial measures are useful to an investor in evaluating CNX because these metrics are widely used to evaluate a natural gas company’s operating performance. Sales of Natural Gas, NGLs and Oil, including cash settlements is a non-GAAP measure that 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, NGLs and Oil, including cash settlements also excludes purchased gas revenue and other revenue and operating income, which are not directly related to CNX’s natural gas producing activities. Natural Gas, NGLs 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. These expenses include, but are not limited to, interest expense, other operating expense and other corporate expenses such as selling, general and administrative costs. We believe that Sales of Natural Gas, NGLs and Oil, including cash settlements, Natural Gas, NGLs and Oil Production Costs and Natural Gas, NGLs and Oil Production Margin (which is derived by subtracting Natural Gas, NGLs and Oil Production Costs from Sales of Natural Gas, NGLs and Oil, including cash settlements) provide useful information to investors for evaluating period-to-period comparisons of earnings trends. These metrics should not be viewed 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.
Non-GAAP Financial Measures Reconciliation
| For the Three Months Ended June 30, | |||||||||||
| (Dollars in millions) | 2026 | 2025 | |||||||||
| Total Revenue and Other Operating Income | $ | 618 | $ | 962 | |||||||
| Deduct: | |||||||||||
| Purchased Gas Revenue | (12) | (10) | |||||||||
| Unrealized Gain on Commodity Derivative Instruments | (131) | (456) | |||||||||
| Other Revenue and Operating Income | (40) | (46) | |||||||||
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure | $ | 435 | $ | 450 | |||||||
| Total Operating Expense | $ | 340 | $ | 346 | |||||||
| Deduct: | |||||||||||
| Depreciation, Depletion and Amortization (DD&A) - Corporate | (5) | (4) | |||||||||
| Exploration and Production Related Other Costs | (3) | (2) | |||||||||
| Purchased Gas Costs | (12) | (9) | |||||||||
| Selling, General and Administrative Costs | (34) | (29) | |||||||||
| Other Operating Expense | (24) | (21) | |||||||||
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1 | $ | 262 | $ | 281 | |||||||
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.
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Selected Natural Gas, NGLs and Oil Production Financial Data
The following table presents a summary of our total sales volumes, sales of natural gas, NGLs and oil including cash settlements, natural gas, NGLs and oil production costs and natural gas, NGLs and oil production margin related to our production operations on a total company basis (See Non-GAAP Financial Measures Reconciliation above for the reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP):
| For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Variance | |||||||||||||||||||||||||||||||||
| in Millions | Per Mcfe | in Millions | Per Mcfe | in Millions | Per Mcfe | ||||||||||||||||||||||||||||||
| Total Sales Volumes (Bcfe)* | 151.5 | 167.6 | (16.1) | ||||||||||||||||||||||||||||||||
| Natural Gas, NGLs and Oil Revenue | $ | 390 | $ | 2.54 | $ | 485 | $ | 2.91 | $ | (95) | $ | (0.37) | |||||||||||||||||||||||
| Gain (Loss) on Commodity Derivative Instruments - Cash Settlement | 45 | 0.33 | (35) | (0.23) | 80 | 0.56 | |||||||||||||||||||||||||||||
| Sales of Natural Gas, NGLs and Oil, including Cash Settlements, a Non-GAAP Financial Measure | 435 | 2.87 | 450 | 2.68 | (15) | 0.19 | |||||||||||||||||||||||||||||
| Lease Operating Expense | 21 | 0.14 | 26 | 0.16 | (5) | (0.02) | |||||||||||||||||||||||||||||
| Production, Ad Valorem, and Other Fees | 7 | 0.05 | 10 | 0.05 | (3) | — | |||||||||||||||||||||||||||||
| Transportation, Gathering and Compression | 103 | 0.68 | 97 | 0.58 | 6 | 0.10 | |||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization (DD&A) | 131 | 0.86 | 148 | 0.88 | (17) | (0.02) | |||||||||||||||||||||||||||||
| Natural Gas, NGLs and Oil Production Costs, a Non-GAAP Financial Measure | 262 | 1.73 | 281 | 1.67 | (19) | 0.06 | |||||||||||||||||||||||||||||
| Natural Gas, NGLs and Oil Production Margin, a Non-GAAP Financial Measure | $ | 173 | $ | 1.14 | $ | 169 | $ | 1.01 | $ | 4 | $ | 0.13 | |||||||||||||||||||||||
*NGLs and Oil/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 NGLs, condensate, and natural gas prices.
The 16.1 Bcfe decrease in sales volumes was primarily due to normal production declines and the timing of when new wells were turned-in-line.
Changes in the average costs per Mcfe were primarily related to the following items:
•Lease operating expense decreased on a per unit basis primarily due to lower water disposal costs as more water was reused in well completion activities rather than taken to disposal. The decrease was offset, in part, by lower total sales volumes during the period.
•Transportation, gathering and compression expense increased on a per unit basis primarily due to the overall decrease in total sales volumes as well as higher repairs and maintenance and processing costs due to production mix.
•Depreciation, depletion and amortization expense decreased on a per unit basis primarily due to a slightly lower annual depletion rate. The decrease was offset, in part, by lower total sales volumes during the period.
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Average Realized Price Reconciliation
The following table presents a breakout of liquids and natural gas sales information and settled derivative information to assist in the understanding of the Company’s natural gas production and sales portfolio and information regarding settled commodity derivatives:
| For the Three Months Ended June 30, | |||||||||||||||||||||||||
| in thousands (unless noted) | 2026 | 2025 | Variance | Percent Change | |||||||||||||||||||||
| LIQUIDS | |||||||||||||||||||||||||
| NGL: | |||||||||||||||||||||||||
| Sales Volume (MMcfe) | 14,796 | 11,109 | 3,687 | 33.2 | % | ||||||||||||||||||||
| Sales Volume (Mbbls) | 2,466 | 1,852 | 614 | 33.2 | % | ||||||||||||||||||||
| Gross Price ($/Bbl) | $ | 23.40 | $ | 21.48 | $ | 1.92 | 8.9 | % | |||||||||||||||||
| Gross NGL Revenue | $ | 57,772 | $ | 39,820 | $ | 17,952 | 45.1 | % | |||||||||||||||||
| Oil/Condensate: | |||||||||||||||||||||||||
| Sales Volume (MMcfe) | 389 | 188 | 201 | 106.9 | % | ||||||||||||||||||||
| Sales Volume (Mbbls) | 65 | 31 | 34 | 109.7 | % | ||||||||||||||||||||
| Gross Price ($/Bbl) | $ | 73.74 | $ | 52.44 | $ | 21.30 | 40.6 | % | |||||||||||||||||
| Gross Oil/Condensate Revenue | $ | 4,784 | $ | 1,645 | $ | 3,139 | 190.8 | % | |||||||||||||||||
| NATURAL GAS | |||||||||||||||||||||||||
| Sales Volume (MMcf) | 136,268 | 156,311 | (20,043) | (12.8) | % | ||||||||||||||||||||
| Sales Price ($/Mcf) | $ | 2.40 | $ | 2.84 | $ | (0.44) | (15.5) | % | |||||||||||||||||
| Gross Natural Gas Revenue | $ | 326,878 | $ | 443,564 | $ | (116,686) | (26.3) | % | |||||||||||||||||
| Hedging Impact ($/Mcf) | $ | 0.33 | $ | (0.23) | $ | 0.56 | (243.5) | % | |||||||||||||||||
| Gain (Loss) on Commodity Derivative Instruments - Cash Settlement | $ | 45,438 | $ | (35,404) | $ | 80,842 | (228.3) | % | |||||||||||||||||
The decrease in Sales of Natural Gas, NGLs and Oil, including Cash Settlements, a Non-GAAP Financial Measure was primarily due to the 16.1 Bcfe decrease in total sales volumes and the $0.44 per Mcf decrease in natural gas sales price, when excluding the impact of hedging. The decreases were offset, in part, by the impact of the change in the gain (loss) on commodity derivative instruments - cash settlement related to the Company's hedging program, the 3.7 Bcfe increase in NGL sales volumes and the $1.92 per Bbl increase in NGL prices.
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SEGMENT ANALYSIS for the three months ended June 30, 2026 compared to the three months ended June 30, 2025:
| For the Three Months Ended | Difference to Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Shale | CBM | Other | Total | Shale | CBM | Other | Total | ||||||||||||||||||||||||||||||||||||||
| Natural Gas, NGLs and Oil Revenue | $ | 361 | $ | 29 | $ | — | $ | 390 | $ | (91) | $ | (4) | $ | — | $ | (95) | ||||||||||||||||||||||||||||||
| Gain on Commodity Derivative Instruments | 42 | 3 | 131 | 176 | 75 | 5 | (325) | (245) | ||||||||||||||||||||||||||||||||||||||
| Purchased Gas Revenue | — | — | 12 | 12 | — | — | 2 | 2 | ||||||||||||||||||||||||||||||||||||||
| Other Revenue and Operating Income | 15 | — | 25 | 40 | (2) | — | (4) | (6) | ||||||||||||||||||||||||||||||||||||||
| Total Revenue and Other Operating Income | 418 | 32 | 168 | 618 | (18) | 1 | (327) | (344) | ||||||||||||||||||||||||||||||||||||||
| Lease Operating Expense | 15 | 6 | — | 21 | (5) | — | — | (5) | ||||||||||||||||||||||||||||||||||||||
| Production, Ad Valorem, and Other Fees | 5 | 2 | — | 7 | (4) | 1 | — | (3) | ||||||||||||||||||||||||||||||||||||||
| Transportation, Gathering and Compression | 87 | 15 | 1 | 103 | 7 | (2) | 1 | 6 | ||||||||||||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization | 114 | 15 | 7 | 136 | (17) | — | 1 | (16) | ||||||||||||||||||||||||||||||||||||||
| Exploration and Production Related Other Costs | — | — | 3 | 3 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
| Purchased Gas Costs | — | — | 12 | 12 | — | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||||
| Selling, General and Administrative Costs | — | — | 34 | 34 | — | — | 5 | 5 | ||||||||||||||||||||||||||||||||||||||
| Other Operating Expense | — | — | 24 | 24 | — | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||||
| Total Operating Expense | 221 | 38 | 81 | 340 | (19) | (1) | 14 | (6) | ||||||||||||||||||||||||||||||||||||||
| Other Expense | — | — | 1 | 1 | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||
| Loss on Asset Sales and Abandonments, net | — | — | 1 | 1 | — | — | 19 | 19 | ||||||||||||||||||||||||||||||||||||||
| Interest Expense | — | — | 39 | 39 | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||||||
| Total Other Expense | — | — | 41 | 41 | — | — | 11 | 11 | ||||||||||||||||||||||||||||||||||||||
| Total Costs and Expenses | 221 | 38 | 122 | 381 | (19) | (1) | 25 | 5 | ||||||||||||||||||||||||||||||||||||||
| Earnings (Loss) Before Income Tax | $ | 197 | $ | |||||||||||||||||||||||||||||||||||||||||||
Next expected filings
- ~2026-10-29 10-Q expected by 2026-11-12 (in 46 days)
- ~2027-02-10 10-K expected by 2027-03-03 (in 150 days)
- ~2027-04-29 10-Q expected by 2027-05-13 (in 228 days)
- ~2027-07-29 10-Q expected by 2027-08-12 (in 319 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-07-30 10-Q Quarterly Report
- 2026-04-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-30 10-Q Quarterly Report
- 2026-02-26 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-02-18 8-K Material Agreement Entered; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-02-10 10-K Annual Report
- 2026-01-29 8-K Earnings Release; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2026-01-02 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-12-17 8-K Unregistered Equity Sale; Other Events; Financial Statements and Exhibits
- 2025-12-16 8-K Unregistered Equity Sale; Other Events; Financial Statements and Exhibits
- 2025-11-05 8-K Officer/Director Change
- 2025-10-30 10-Q Quarterly Report
- 2025-10-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-09-22 8-K Officer/Director Change