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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): October 25, 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 third quarter 2023 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: October 25, 2023





EX-99.1 2 ex991supplementalq323.htm EX-99.1 Document

cnxlogo2a03.jpg

3Q 2023 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
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
GAS Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Shale Sales Volumes (Bcf) 121.1  114.0  114.8  119.0  125.1 
CBM Sales Volumes (Bcf) 10.2  10.1  10.4  10.5  10.7 
Other Sales Volumes (Bcf) —  0.1  0.1  0.1  0.2 
LIQUIDS*
NGLs Sales Volumes (Bcfe) 11.9  9.7  10.1  10.5  10.2 
Oil and Condensate Sales Volumes (Bcfe) 0.2  0.3  0.5  0.5  0.2 
TOTAL (Bcfe) 143.4  134.2  135.9  140.6  146.4 
Average Daily Production (MMcfe) 1,559.0  1,474.2  1,509.6  1,528.4  1,590.9 
* 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.
Q3 2023 ACTIVITY SUMMARY TD Frac TIL
Average Lateral Length(1)
 Rigs at Period End
SWPA Marcellus 3 11 11 13,035 -
Utica - - 2 10,500 -
CPA Marcellus 3 - - - -
Utica 6 - - - 1
Total 12 11 13 1
(1) Measured in lateral feet from perforation to perforation.



2

NATURAL GAS HEDGE VOLUMES AND PRICING(1)
Q4 2023 2023 2024 2025 2026 2027
NYMEX Hedges
Volumes (Bcf) 105.7 387.2 299.9 242.4 246.9 105.1
Average Prices ($/Mcf) $3.01 $3.04 $3.09 $3.28 $3.30 $4.23
Physical Fixed Price Sales and Index Hedges
Volumes (Bcf) 8.7 34.7 121.7 129.7 92.5 111.1
Average Prices ($/Mcf) $2.14 $2.17 $2.43 $2.30 $2.63 $3.31
Total Volumes Hedged (Bcf)(2)
 114.4 421.9 421.6 372.1 339.4 216.2
NYMEX + Basis (fully-covered volumes)(3)
Volumes (Bcf) 110.8 421.9 411.4 372.1 322.6 196.4
Average Prices ($/Mcf) $2.51 $2.51 $2.50 $2.42 $2.48 $3.26
NYMEX Hedges Exposed to Basis
Volumes (Bcf) 3.6 - 10.2 - 16.8 19.8
Average Prices ($/Mcf) $3.01 - $3.09 - $3.30 $4.23
Total Volumes Hedged (Bcf)(2)
 114.4 421.9 421.6 372.1 339.4 216.2
Estimated Conversion Factor(4)
 1.080 1.083 1.075 1.070 1.069 1.068
(1) Hedge positions as of 10/5/2023.
(2) Excludes basis hedges in excess of NYMEX hedges of 16.2 Bcf and 2.5 Bcf for 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
Q4 2023 CY2023 CY2024
Hedged Volumes Wtd. Avg. Average Forecasted Hedged Volumes Wtd. Avg. Average Forecasted Hedged Volumes Wtd. Avg. Average Forecasted
($/MMBtu) (000 MMBtu) Hedged Price
Forward Market(1)
Gain/(Loss)(2) ($ in 000s)
 (000 MMBtu) Hedged Price
Forward Market(1)
Gain/(Loss)(2) ($ in 000s)
 (000 MMBtu) Hedged Price Forward Market
Gain/(Loss)(2) ($ in 000s)
NYMEX 114,080 $2.79 $3.15 ($40,517) 419,300 $2.81 $2.80 $22,370 322,250 $2.87 $3.50 ($201,553)
Index 9,200 $1.98 $1.94 $331  36,500 $1.98 $1.80 $6,753  118,250 $2.27 $2.67 ($46,756)
Basis:
Eastern Gas-South (DOM) 14,950 ($0.66) ($1.21) $8,205 59,313 ($0.66) ($1.01) $20,738 73,200 ($0.58) ($0.98) $29,404
TCO Pool (TCO) 23,413 ($0.63) ($1.05) $10,792 100,850 ($0.64) ($0.82) $19,645 32,335 ($0.57) ($0.76) $6,301
Michcon (NMC) 10,430 ($0.26) ($0.37) $1,261 43,190 ($0.25) ($0.23) ($1,034) 16,780 ($0.21) ($0.27) $910
TETCO M3 (TMT) 620 ($0.98) ($0.42) $247 6,530 ($0.04) $0.27 ($3,685) - - ($0.03) -
TETCO M2 (BM2) 40,020 ($0.56) ($1.20) $25,358 158,775 ($0.56) ($1.01) $72,336 150,060 ($0.61) ($0.95) $50,614
Transco Zone 5 South (DKR) 2,610 $0.69 $0.92 ($405) 12,165 $0.62 $1.64 ($12,590) 2,275 $1.23 $0.57 ($2,505)
Total Financial Basis Hedges 92,043 $45,458 380,823 $95,410 274,650 $84,724
Total Projected Realized Gain (Loss) $5,272 $124,533 ($163,585)
Note: Forward market prices, hedged volumes, and hedge prices are as of 10/5/2023. Anticipated hedging activity is not included in projections.
(1) January 2023 through October 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) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022
Realized Gain (Loss) $102 $79 ($61) ($360) ($651)
Unrealized (Loss) Gain ($54) $463 $823 $1,138 ($411)
Gain (Loss) on Commodity Derivative Instruments $48 $542 $762 $778 ($1,062)

4

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Dollars in thousands, except per share data
Revenue and Other Operating Income (Loss): Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Natural Gas, NGL and Oil Revenue $255,124 $257,061 $455,639 $776,740 $1,127,341
Gain (Loss) on Commodity Derivative Instruments 47,803 542,472 762,167 777,615 (1,062,353)
Purchased Gas Revenue 11,135 9,355 36,812 61,421 31,738
Other Revenue and Operating Income 36,444 30,812 21,359 21,054 20,335
Total Revenue and Other Operating Income 350,506  839,700  1,275,977  1,636,830  117,061 
Costs and Expenses:
Operating Expense
Lease Operating Expense 16,573 13,092 16,474 17,739 19,239
Transportation, Gathering and Compression 95,820 87,872 98,096 96,385 96,632
Production, Ad Valorem, and Other Fees 8,131 5,419 9,641 11,599 13,481
Depreciation, Depletion and Amortization 111,855 103,682 105,222 112,245 114,167
Exploration and Production Related Other Costs 1,600 1,727 5,104 1,212 685
Purchased Gas Costs 10,694 8,794 34,347 62,217 32,309
Selling, General, and Administrative Costs 29,213 30,017 36,576 31,961 27,722
Other Operating Expense 26,057  21,031  15,139  9,818  21,238 
Total Operating Expense 299,943 271,634 320,599 343,176 325,473
Other Expense
Other Expense 1,454 2,510 1,168 3,494 1,922
(Gain) Loss on Assets Sales and Abandonments, net (5,524) (105,986) (9,482) (1,426) 12,077
Loss on Debt Extinguishment — — — 19 9,953
Interest Expense 35,391  34,820  35,736  35,218  34,351 
Total Other Expense (Income) 31,321 (68,656) 27,422 37,305 58,303
Total Costs and Expenses 331,264  202,978  348,021  380,481  383,776 
Earnings (Loss) Before Income Tax 19,242 636,722 927,956 1,256,349 (266,715)
Income Tax (Benefit) Expense (2,139) 161,767  217,561  81,770  160,357 
Net Income (Loss) $21,381 $474,955 $710,395 $1,174,579 $(427,072)
Earnings (Loss) per Share
Basic $0.13 $2.89 $4.22 $6.64 $(2.28)
Diluted $0.12 $2.47 $3.61 $5.68 $(2.28)
Weighted-Average Shares Outstanding Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Weighted-Average Shares of Common Stock Outstanding 160,703,884  164,139,583  168,452,107  176,916,881  187,511,940 
Effect of Diluted Shares* 29,970,614  28,852,003  28,692,767  30,127,743  — 
Weighted-Average Diluted Shares of Common Stock Outstanding 190,674,498  192,991,586  197,144,874  207,044,624  187,511,940 
*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 thousands 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22
ASSETS
Current Assets:
Cash and Cash Equivalents $8,653 $22,765 $2,799 $21,321 $1,594
Accounts and Notes Receivable
Trade, net 75,854  97,702  136,208  348,458  479,088 
Other Receivables, net 15,501  11,370  8,015  6,184  5,436 
Supplies Inventories 20,007  26,470  29,339  27,156  19,650 
Derivative Instruments 166,486  227,012  159,794  154,474  200,598 
Prepaid Expenses 14,091  14,504  15,443  16,211  17,373 
Total Current Assets 300,592  399,823  351,598  573,804  723,739 
Property, Plant and Equipment:
Property, Plant and Equipment: 12,399,820  12,247,858  12,099,212  11,907,698  11,738,308 
Less-Accumulated Depreciation, Depletion and Amortization 5,091,172  5,008,026  4,913,268  4,811,189  4,704,665 
Total Property, Plant and Equipment—Net 7,308,648  7,239,832  7,185,944  7,096,509  7,033,643 
Other Non-Current Assets:
Operating Lease Right-of-Use Assets 152,914  164,503  170,376  174,849  187,376 
Derivative Instruments 287,029  305,887  208,933  244,931  258,539 
Goodwill 323,314  323,314  323,314  323,314  323,314 
Other Intangible Assets 72,076  73,714  75,352  76,990  78,628 
Other Non-Current Assets 48,064  24,782  24,628  25,376  27,887 
Total Other Non-Current Assets 883,397  892,200  802,603  845,460  875,744 
TOTAL ASSETS $8,492,637 $8,531,855 $8,340,145 $8,515,773 $8,633,126
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $185,951 $164,177 $195,867 $191,343 $169,406
Derivative Instruments 215,803  240,874  242,900  782,653  1,407,892 
Current Portion of Finance Lease Obligations 1,792  1,379  1,423  881  686 
Current Portion of Long-Term Debt 325,152  —  —  —  323,122 
Current Portion of Operating Lease Obligations 55,448  53,166  50,844  47,436  48,710 
Other Accrued Liabilities 206,872  232,417  213,874  290,491  308,212 
Total Current Liabilities 991,018  692,013  704,908  1,312,804  2,258,028 
Non-Current Liabilities:
Long-Term Debt 1,843,780  2,154,093  2,203,108  2,205,735  1,920,440 
Finance Lease Obligations 5,384  3,732  4,023  1,970  1,375 
Operating Lease Obligations 101,663  114,998  122,726  132,105  143,291 
Derivative Instruments 806,291  812,744  1,124,884  1,517,021  2,012,326 
Deferred Income Taxes 604,750  609,133  449,656  232,280  146,621 
Asset Retirement Obligations 83,793  87,987  89,619  89,079  87,243 
Other Non-Current Liabilities 98,644  73,968  73,925  74,318  86,814 
Total Non-Current Liabilities 3,544,305  3,856,655  4,067,941  4,252,508  4,398,110 
TOTAL LIABILITIES 4,535,323  4,548,668  4,772,849  5,565,312  6,656,138 
Stockholders' Equity
Common Stock 1,600  1,625  1,663  1,712  1,835 
Capital in Excess of Par Value 2,423,875  2,440,895  2,468,079  2,506,269  2,602,697 
Preferred Stock —  —  —  —  — 
Retained Earnings (Accumulated Deficit) 1,538,136  1,547,036  1,103,995  448,993  (613,426)
Accumulated Other Comprehensive Loss (6,297) (6,369) (6,441) (6,513) (14,118)
TOTAL STOCKHOLDERS' EQUITY 3,957,314  3,983,187  3,567,296  2,950,461  1,976,988 
TOTAL LIABILITIES AND EQUITY $8,492,637 $8,531,855 $8,340,145 $8,515,773 $8,633,126




6

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Dollars in thousands
Cash Flows from Operating Activities: Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Net Income (Loss) $21,381 $474,955 $710,395 $1,174,579 ($427,072)
Depreciation, Depletion and Amortization 111,855 103,682 105,222 112,245 114,167
Amortization of Deferred Financing Costs 2,329 2,317 2,297 2,293 2,048
Stock-Based Compensation 2,870 4,542 8,638 1,493 3,829
(Gain) Loss on Asset Sales and Abandonments, net (5,524) (105,986) (9,482) (1,426) 12,077
Loss on Debt Extinguishment — — — 19 9,953
(Gain) Loss on Commodity Derivative Instruments (47,803) (542,472) (762,167) (777,615) 1,062,353
Loss (Gain) on Other Derivative Instruments 1,094 176 961 (300) (2,694)
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments 94,569 63,957 (140,005) (282,897) (651,247)
Deferred Income Taxes (4,410) 159,450 217,349 83,076 160,680
Other 754 (1,334) (114) 1,619 1,646
Changes in Operating Assets:
Accounts and Notes Receivable 17,468 35,400 210,383 129,759 (31,478)
Supplies Inventories 6,464 2,868 (2,183) (7,505) (5,160)
Prepaid Expenses 413 939 768 1,181 (4,840)
Changes in Other Assets (78) 498 (153) (143) 19,800
Changes in Operating Liabilities:
Accounts Payable 35,021 (16,981) (19,242) 25,947 (684)
Accrued Interest (27,777) 16,274 2,216 16,550 (14,373)
Other Operating Liabilities (2,356) 342 (75,792) (36,289) 19,202
Changes in Other Liabilities (277) 98 (353) (315) (3,825)
Net Cash Provided by Operating Activities 205,993 198,725 248,738 442,271 264,382
Cash Flows from Investing Activities:
Capital Expenditures (205,642) (195,985) (170,028) (173,217) (133,553)
Proceeds from Asset Sales 19,128 132,293 10,517 6,889 4,041
Net Cash Used in Investing Activities (186,514) (63,692) (159,511) (166,328) (129,512)
Cash Flows from Financing Activities:
Payments on Long-Term Notes — — — — (358,750)
Proceeds from CNXM Revolving Credit Facility Borrowings 279,001 60,550 72,750 109,700 56,800
Repayments of CNXM Revolving Credit Facility Borrowings (254,001) (97,050) (90,450) (104,150) (96,950)
Proceeds from CNX Revolving Credit Facility Borrowings 81,550 446,900 460,400 631,900 1,208,250
Repayments of CNX Revolving Credit Facility Borrowings (93,000) (460,700) (446,600) (676,550) (1,297,250)
Proceeds from Issuance of CNX Senior Notes — — — — 493,750
Payments on Other Debt (425) (362) (348) (191) (163)
Proceeds from Issuance of Common Stock 915 129 610 78 135
Shares Withheld for Taxes (96) (40) (9,344) (180) (7)
Purchases of Common Stock (47,535) (64,146) (94,759) (215,106) (138,052)
Debt Issuance and Financing Fees — (348) (8) (1,717) (1,277)
Net Cash Used in Financing Activities (33,591) (115,067) (107,749) (256,216) (133,514)
Net (Decrease) Increase in Cash and Cash Equivalents (14,112) 19,966 (18,522) 19,727 1,356
Cash and Cash Equivalents at Beginning of Period 22,765 2,799 21,321 1,594 238
Cash and Cash Equivalents at End of Period $8,653 $22,765 $2,799 $21,321 $1,594





7

MARKET MIX AND NATURAL GAS PRICE RECONCILIATION
2023E
Gas Sold (%)(1)
Basis(2)
Eastern Gas-South 8% ($0.80)
ETNG Mainline 4% $0.83
TCO Pool 28% ($0.90)
TETCO ELA & WLA 4% ($0.34)
TETCO M3 2% $0.47
TETCO M2 34% ($1.02)
Michcon 10% ($0.49)
Physical basis sales 10% ($0.05)
Weighted Average Basis 100% ($0.69)
NYMEX $2.80
Weighted Average Basis (Not considering hedging) ($0.69)
Realized Price (per MMBtu) $2.11
     Conversion Factor (MMBtu/Mcf) 1.083
Realized Price Before Financial Hedging (per Mcf) $2.29
(1) Individual market percentages exclude physical basis sales, which are shown separately.
(2) Reflects actual realized basis for nine months ended September 30; October - December forward market basis prices as of 10/5/2023.

8

PRICE AND COST DATA (PER MCFE) - NON-GAAP
Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Average Sales Price - Natural Gas $1.64 $1.80 $3.22 $5.54 $7.82
Average Gain (Loss) on Commodity Derivative Instruments - Cash Settlement- Gas $0.77  $0.64  ($0.49) ($2.78) ($4.79)
Average Sales Price - Oil and Condensate* $11.21 $10.57 $11.22 $12.34 $14.74
Average Sales Price - NGLs* $3.19 $3.18 $4.58 $4.92 $6.05
Average Sales Price of Natural Gas, NGL and Oil, including Cash Settlement
 $2.49 $2.51 $2.90 $2.96 $3.25
Lease Operating Expense (LOE) $0.12 $0.10 $0.12 $0.13 $0.13
Production, Ad Valorem, and Other Fees $0.06 $0.04 $0.07 $0.08 $0.09
Transportation, Gathering and Compression $0.67 $0.65 $0.72 $0.69 $0.66
Depreciation, Depletion and Amortization (DD&A) $0.75 $0.75 $0.75 $0.77 $0.76
Total Natural Gas, NGL and Oil Production Costs
 $1.60 $1.54 $1.66 $1.67 $1.64
Total Natural Gas, NGL and Oil Production Cash Costs, before DD&A
 $0.85 $0.79 $0.91 $0.90 $0.88
Natural Gas, NGL and Oil Production Cash Margin, before DD&A $1.64 $1.72 $1.99 $2.06 $2.37
Fully Burdened Cash Costs, before DD&A(1)
 $1.17 $1.15 $1.28 $1.29 $1.29
Fully Burdened Cash Margin, before DD&A $1.32 $1.36 $1.62 $1.67 $1.96
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. Q3 2023, Q2 2023, Q1 2023, Q4 2022 and Q3 2022 total fully burdened cash costs exclude a (gain)/loss on asset sales of ($0.04) per Mcfe, ($0.79) per Mcfe, ($0.07) per Mcfe, ($0.01) per Mcfe and $0.08 per Mcfe, respectively. Q3 2023, Q2 2023, Q1 2023, Q4 2022 and Q3 2022 exclude unrealized losses on interest rate swaps and noncash amortization of $0.02 per Mcfe, $0.02 per Mcfe, $0.02 per Mcfe, $0.01 per Mcfe and $0.00 per Mcfe, respectively. Q3 2023, Q2 2023, Q1 2023, Q4 2022 and Q3 2022 exclude loss on debt extinguishment and inventory adjustments of $0.02 per Mcfe, $0.00 per Mcfe, $0.02 per Mcfe, $0.00 per Mcfe and $0.07 per Mcfe, respectively.
Natural Gas Price Reconciliation Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
NYMEX Natural Gas ($/MMBtu) $2.55 $2.10 $3.42 $6.26 $8.20
Average Differential (1.04) (0.44) (0.44) (1.17) (1.01)
BTU Conversion (MMBtu/Mcf)* 0.13  0.14  0.24  0.45  0.63 
Gain (Loss) on Commodity Derivative Instruments-Cash Settlement 0.77  0.64  (0.49) (2.78) (4.79)
Realized Gas Price per Mcf $2.41 $2.44 $2.73 $2.76 $3.03
*Conversion factor 1.08 1.09 1.08 1.09 1.09







9

GUIDANCE
Previous Updated
($ in millions) 2023E 2023E
Low High Low High
Production Volumes (Bcfe) 545 - 555 545 - 555
    % Liquids ~7% ‘- ~8% ~7% ‘- ~8%
    % of Natural Gas Hedged 85% 86%
Prices on Open Volumes(1)
    Natural Gas NYMEX ($/MMBtu) $2.81 $2.80
    Natural Gas Differential ($/MMBtu) ($0.66) ($0.69)
    NGL Realized Price ($/Bbl) ~$20.00 ~$20.00
($ in millions)
Adjusted EBITDAX(2)
 $900 - $1,000 $900 - $1,000
Capital Expenditures
    Drilling & Completions (D&C) $455 - $475 $455 - $475
    Non-D&C $145 - $160 $145 - $160
    Discretionary Capital $25 - $40 $25 - $40
Total Capital Expenditures $625 - $675 $625 - $675
($ in millions)
Free Cash Flow (FCF)(2)
 ~$325 ~$325
    FCF Per Share(2)(3)
 ~$2.01 ~$2.05
(1) Forward market prices for updated 2023 guidance as of 10/5/2023.
(2) Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions. FCF for the updated guidance includes approximately $165 million in expected asset sales in 2023.
(3) Previous guidance for 2023 FCF per share based on shares outstanding of 161,464,938, as of 7/14/2023. Updated guidance for 2023 FCF per share based on shares outstanding of 158,853,261, as of 10/12/2023.

2023E ACTIVITY SUMMARY TIL
Average Lateral Length(1)
SWPA Central Marcellus 23 14,500
Utica 4 11,300
SWPA Greater Marcellus 4 10,800
Utica - -
CPA Marcellus 3 8,000
Utica - -
Total 34
(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 (Loss) 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 (gain) 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 (gain) 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 2022 Annual Report on Form 10-K as filed with the SEC on February 9, 2023). 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) Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Total Revenue and Other Operating Income $350 $840 $1,276 $1,637 $117
Add (Deduct):
Purchased Gas Revenue (11) (9) (37) (62) (32)
Unrealized Loss (Gain) on Commodity Derivative Instruments 54  (463) (823) (1,138) 411 
Other Revenue and Operating Income (36) (31) (21) (21) (20)
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure $357 $337 $395 $416 $476
Total Operating Expense $300 $272 $320 $343 $326
Add (Deduct):
Depreciation, Depletion and Amortization (DD&A) - Corporate (4) (3) (3) (4) (3)
   Exploration and Production Related Other Costs (2) (2) (5) (1) (1)
Purchased Gas Costs (10) (9) (34) (62) (32)
Selling, General and Administrative Costs (29) (30) (37) (33) (28)
Other Operating Expense (26) (21) (15) (8) (22)
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1
 $229 $207 $226 $235 $240
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) Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Net Income (Loss) $21 $475 $710 $1,175 ($427)
Interest Expense 35  35  36  35  35 
Income Tax (Benefit) Expense (2) 161  218  82  160 
Earnings (Loss) Before Interest & Taxes (EBIT) 54  671  964  1,292  (232)
Depreciation, Depletion & Amortization 112 104  105  112  114 
Exploration Expense 2 2  5  1  1 
Earnings (Loss) Before Interest, Taxes, DD&A and Exploration (EBITDAX) $168 $777 $1,074 $1,405 ($117)
Adjustments:
Unrealized Loss (Gain) on Commodity Derivative Instruments 54 (463) (823) (1,138) 411 
Loss (Gain) on Non-Operated Asset Sale 3 (103) —  —  — 
Stock-Based Compensation 3  4  9  1  4 
Loss on Debt Extinguishment —  —  —  —  10 
Loss on Abandonment — —  —  4  16 
Virginia Flood Expense — 1  —  1  2 
Severance — 1  1  1  — 
Total Pre-tax Adjustments 60  (560) (813) (1,131) 443 
Adjusted EBITDAX $228 $217 $261 $274 $326
Adjusted Net Income (Loss) is defined as net income (loss) after adjusting for the discrete items listed below as well as the related tax effect.
(Dollars in millions) Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Net Income (Loss) from EBITDAX Reconciliation $21 $475 $710 $1,175 ($427)
Adjustments:
Total Pre-tax Adjustments from EBITDAX Reconciliation 60  (560) (813) (1,131) 443 
Tax Effect of Adjustments (15) 142  212  295  (116)
Adjusted Net Income (Loss) $66 $57 $109 $339 ($100)







13

Non-GAAP Measures
Operating Margin: Adjusted EBIT divided by Total Revenue and Other Operating Income after adjusting for unrealized (gain) loss on commodity derivative instruments.
(Dollars in millions) Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Total Revenue and Other Operating Income $350 $840 $1,276 $1,637 $117
Net Income (Loss) $21 $475 $710 $1,175 ($427)
Interest Expense 35 35 36 35 35
Income Tax (Benefit) Expense (2) 161 218 82 160
Earnings (Loss) Before Interest & Taxes (EBIT) 54 671 964 1,292 (232)
Depreciation, Depletion & Amortization 112 104 105 112 114
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA) $166 $775 $1,069 $1,404 ($118)
Adjustments:
Unrealized Loss (Gain) on Commodity Derivative Instruments $54 ($463) ($823) ($1,138) $411
Total Adjustments $54 ($463) ($823) ($1,138) $411
Total Revenue and Other Operating Income Minus Unrealized Loss (Gain) on Commodity Derivative Instruments $404 $377 $453 $499 $528
Adjusted EBIT $108 $208 $141 $154 $179
Operating Margin 27  % 55  % 31  % 31  % 34  %
















14

Non-GAAP Measures
Cash Operating Margin: Adjusted EBITDA divided by Total Revenue and Other Operating Income after adjusting for unrealized (gain) loss on commodity derivative instruments, stock based compensation and the other discrete items listed below.
(Dollars in millions) Q3-2023 Q2-2023 Q1-2023 Q4-2022 Q3-2022
Total Revenue and Other Operating Income $350 $840 $1,276 $1,637 $117
Net Income (Loss) $21 $475 $710 $1,175 ($427)
Interest Expense 35 35 36 35 35
Income Tax (Benefit) Expense (2) 161 218 82 160
Earnings (Loss) Before Interest & Taxes (EBIT) 54 671 964 1,292 (232)
Depreciation, Depletion & Amortization 112 104 105 112 114
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA) $166 $775 $1,069 $1,404 ($118)
Adjustments:
Unrealized Loss (Gain) on Commodity Derivative Instruments $54 ($463) ($823) ($1,138) $411
Loss (Gain) on Non-Operated Asset Sale 3 (103) — — —
Stock-Based Compensation 3 4 9 1 4
Loss on Abandonment — — — 4 16
Virginia Flood Expense — 1 — 1 2
Loss on Debt Extinguishment — — — — 10
Severance — 1 1 1 —
Total Adjustments $60 ($560) ($813) ($1,131) $443
Total Revenue and Other Operating Income Minus Unrealized Loss (Gain) on Commodity Derivative Instruments $404 $377 $453 $499 $528
Adjusted EBITDA $226 $215 $256 $273 $325
Cash Operating Margin 56  % 57  % 57  % 55  % 62  %















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 Debt 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 31-Dec-21 31-Dec-20 30-Sep-20
Total Long-Term Debt (GAAP)(1)
 $2,169 $2,154 $2,203 $2,206 $2,214 $2,424 $2,600
Less: Cash and Cash Equivalents 9 23 3 21 4 22 156
Net Debt $2,160 $2,131 $2,200 $2,185 $2,210 $2,402 $2,444
(1) Includes current portion
(Dollars in millions)
Adjusted Net Debt 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 31-Dec-21 31-Dec-20 30-Sep-20
Total Long-Term Debt (GAAP)(1)
 $2,169 $2,154 $2,203 $2,206 $2,214 $2,424 $2,600
Plus: Impact of Recent Accounting Pronouncement(2)
 — — — — 82 98 101
Less: Cash and Cash Equivalents 9 23 3 21 4 22 156
Adjusted Net Debt $2,160 $2,131 $2,200 $2,185 $2,292 $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 10 - Long-Term Debt in the Notes to the Unaudited Consolidated Financial Statements in Item 1 of CNX’s September 30, 2023 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 Ended Twelve Months Ended
(Dollars in millions) 31-Dec-22 31-Mar-23 30-Jun-23 30-Sep-23 30-Sep-23
Net Income $1,175 $710 $475 $21 $2,381
Interest Expense 35 36 35 35 141
Income Tax Expense (Benefit) 82 218 161 (2) 459
Earnings Before Interest & Taxes (EBIT) 1,292 964 671 54 2,981
Depreciation, Depletion & Amortization 112 105 104 112 433
Exploration Expense 1 5 2 2 10
Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX) 1,405 1,074 777 168 3,424
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments (1,138) (823) (463) 54 (2,370)
(Gain) Loss on Non-Operated Asset Sale — — (103) 3 (100)
Stock Based Compensation 1 9 4 3 17
Severance 1 1 1 — 3
Loss on Abandonment 4 — — — 4
Virginia Flood Expense 1 — 1 — 2
Total Pre-tax Adjustments (1,131) (813) (560) 60 (2,444)
Adjusted EBITDAX TTM $274 $261 $217 $228 $980


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.
2023 Free Cash Flow
(Dollars in millions) Q3-2023 Q2-2023 Q1-2023
Net Cash Provided by Operating Activities $206 $199 $249
Capital Expenditures (206) (196) (170)
Proceeds from Asset Sales 19 132 10
Free Cash Flow $19 $135 $89
2022 Free Cash Flow
(Dollars in millions) Q4-2022 Q3-2022 Q2-2022 Q1-2022 YTD-2022
Net Cash Provided by Operating Activities $442 $265 $192 $336 $1,235
Capital Expenditures (173) (134) (137) (122) (566)
Proceeds from Asset Sales 7 4 7 20 38
Free Cash Flow $276 $135 $62 $234 $707
2022 Organic Free Cash Flow
(Dollars in millions) Q4-2022 Q3-2022 Q2-2022 Q1-2022 YTD-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) Q4-2021 Q3-2021 Q2-2021 Q1-2021 YTD-2021
Net Cash Provided by Operating Activities $254 $215 $239 $219 $927
Capital Expenditures (117) (97) (129) (123) (466)
Proceeds from Asset Sales 21 12 7 5 45
Free Cash Flow $158 $130 $117 $101 $506
2021 Organic Free Cash Flow
(Dollars in millions) Q4-2021 Q3-2021 Q2-2021 Q1-2021 YTD-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) Q4-2020 Q3-2020 Q2-2020 Q1-2020 YTD-2020
Net Cash Provided by Operating Activities $161 $223 $144 $267 $795
Capital Expenditures (92) (108) (135) (152) (487)
Proceeds from Asset Sales 16 6 12 14 48
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, 2022 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