CNX Resources Q4 EPS of $0.68, Revenues $419M, Production Up 7.3%
CNX Resources reported Q4 EPS of $0.68, beating the $0.40 consensus by 70%, and revenues reached $419M, up 12.4% YoY, while production rose 7.3%. For 2026, management plans flat production despite front-loaded capex, plans five Deep Utica laterals and expects $30M annually from RNG and will not add frac crews.
1. Q4 Earnings and Production Outperformance
CNX Resources reported fourth quarter 2025 earnings of $0.68 per share, comfortably surpassing the consensus estimate of $0.40 per share and representing a 70% earnings surprise. Revenue for the period rose to $419 million, up from $386 million a year earlier, marking a 8.5% year-over-year increase. Natural gas production increased by 7.3% compared to the fourth quarter of 2024, driven by steady output growth in the Appalachian Basin. Higher realized prices on a blended basis contributed to stronger cash flow, supporting the company’s disciplined capital allocation strategy.
2. 2026 Capital Expenditure and Production Guidance
CNX outlined a full-year 2026 capital expenditure program of approximately $800 million, weighted toward the first half of the year to support its Deep Utica development. The company plans to drill and complete five laterals in the Utica Shale, complementing ongoing spacing tests designed to optimize well performance. Despite the front-loaded investment, CNX reiterated flat production guidance for 2026, targeting a range of 1.50–1.55 billion cubic feet equivalent per day, reflecting a maintenance-mode stance unless sustained price signals or new demand infrastructure justify incremental drilling activity.
3. RNG Business and Hedge Portfolio Impact
CNX expects its renewable natural gas (RNG) segment to generate approximately $30 million in annual EBITDA through Section 45Z tax credits, enhancing the company’s cash flow diversification. The hedge portfolio remains 60% hedged for 2026 at an average floor price of $2.75 per Mcf, providing downside protection while preserving upside participation. This risk-management approach underpins the company’s commitment to balance sheet strength and share-holder distributions.
4. Management Commentary and Long-Term Strategy
During the Q&A session, management emphasized CNX’s ultra-low carbon intensity advantage and its 161-year regional legacy in Appalachia. Chief Executive Officer Alan Shepard highlighted ongoing technology innovations in completion design and midstream integration to improve returns per well. The board reaffirmed its intent to maintain a shareholder return framework that prioritizes debt reduction and potential distributions, underpinned by free cash flow sustainability and capital discipline.