CNX Resources Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Strong Earnings: CNX Resources reported a Q4 GAAP EPS of $1.28, beating expectations by $0.91, indicating robust profitability and effective financial management.
- Significant Revenue Growth: The company achieved Q4 revenue of $610.48 million, a staggering 347% increase year-over-year, surpassing market expectations by $179.81 million, reflecting rapid business expansion and strong market demand.
- 2026 Production Outlook: CNX expects total production volumes for 2026 to range between 605 and 620 Bcfe, with plans to drill 30 wells, including 27 Marcellus and 3 deep Utica wells, demonstrating confidence in future growth.
- Capital Expenditure Plans: Projected capital expenditures for the 2026 base program are expected to be between $540 million and $570 million, which will also include the first of three annual payments of $16 million related to the acquisition of Utica rights, indicating a strategic focus on resource expansion.
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Analyst Views on CNX
Wall Street analysts forecast CNX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNX is 33.90 USD with a low forecast of 24.00 USD and a high forecast of 43.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
0 Buy
7 Hold
3 Sell
Moderate Sell
Current: 36.730
Low
24.00
Averages
33.90
High
43.00
Current: 36.730
Low
24.00
Averages
33.90
High
43.00
About CNX
CNX Resources Corporation is an ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, United States. The Company's operations are primarily centered on unconventional shale formations, primarily the Marcellus Shale and Utica Shale, in Pennsylvania, Ohio and West Virginia. Additionally, it operates and develops Coalbed Methane (CBM) properties in Virginia. It has rights to extract natural gas from Shale formations in Pennsylvania, West Virginia, and Ohio from approximately 528,000 net Marcellus Shale acres and 606,000 net Utica Shale acres. It has rights to extract CBM in Virginia from approximately 283,000 net CBM acres. It extracts CBM natural gas primarily from the Pocahontas #3 seam. It also has the right to capture Coal Mine Methane from active and abandoned mines in this region. It owns or operates around 2,700 miles of natural gas gathering pipelines as well as a number of natural gas processing facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CNX Resources Set to Announce Q4 Earnings on January 29
- Earnings Announcement Schedule: CNX Resources is set to release its Q4 earnings on January 29 before market open, with consensus EPS estimated at $0.39 and revenue expected to reach $430.67 million, reflecting an 18.2% year-over-year growth.
- Performance Expectation Analysis: Over the past year, CNX has beaten EPS estimates 50% of the time and revenue estimates 25% of the time, indicating a degree of financial stability amidst market fluctuations.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen four upward and four downward revisions, while revenue estimates have experienced one upward and two downward revisions, highlighting market divergence regarding the company's future performance.
- Market Reaction: Despite Barclays downgrading CNX Resources to a Sell rating, J.P. Morgan raised its rating in a gas sector shuffle, reflecting recognition of the company's financial management amidst mixed market sentiments.
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CNX Resources Q4 2025 Earnings Call Insights
- Operational Resilience: CEO Alan Shepard highlighted the company's operational resilience during extreme cold weather in the earnings call, thanking industry workers for their efforts, which underscores the company's stability in challenging conditions.
- Capital Expenditure Strategy: CFO Everett Good indicated that first-half 2026 CapEx would account for 60% of the total for the year, allowing flexibility to accelerate frac activity in the second half, reflecting the company's sensitivity to market conditions.
- Confidence in Utica Program: Management reaffirmed confidence in the deep Utica program, planning to complete about five Utica laterals in 2026, attributing any apparent slowdown to timing rather than strategic shifts, demonstrating commitment to long-term development.
- Future Outlook: CNX expects to be approximately 80% hedged for 2027, aiming for a weighted average NYMEX price of about $4, indicating a cautious hedging strategy to protect future earnings amid market uncertainties.
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