CNX Reports Second Quarter Results

PITTSBURGH, July 30, 2020 /PRNewswire/ -- CNX Resources Corporation (NYSE: CNX) ("CNX" or "the company") today announced the following financial and operational results:

Second Quarter Highlights

  • Reported a net loss attributable to CNX shareholders of $146 million, or a loss of $0.78 per diluted share, including an unrealized loss on commodity derivative instruments of $206 million.
  • Adjusted net income (a non-GAAP measure)(1) was $24 million.
  • Adjusted EBITDAX (a non-GAAP measure)(1) was $212 million.
  • Net cash provided by operating activities was $144 million and capital expenditures were $135 million.
  • Proceeds from asset sales were $12 million.
  • Consolidated free cash flow (FCF) (a non-GAAP measure)(1) was $21 million.
  • Received $29 million in net proceeds from monetizing and terminating approximately 39 million MMBtus of NYMEX natural gas hedges and a similar quantity of financial basis hedges that were to settle at various times from May through November of 2020.
  • Completed private offering of $345 million aggregate principal amount of 2.25% convertible senior notes due 2026.
    • Used net proceeds of convertible debt offering to pay down 5.875% notes due in 2022. CNX has paid down the aggregate principal amount of its 2022 notes by approximately $482 million year-to-date.

"The second quarter highlights our philosophy in action with lower quarterly production cash costs, positive free cash flow, a balance sheet strengthening convertible notes offering, and navigating a challenging commodity price environment by efficiently deferring volumes to higher price periods," commented Nicholas J. DeIuliis, president and CEO. "We remain committed to making capital allocation decisions to maximize the long-term intrinsic value per share of the company."

Mr. DeIuliis continued, "There are three main tenets that underlay our plan. First, we generate free cash flow on a day in, and day out basis. Our programmatic hedging helps drive our free cash flow generation and will continue to be a key tactic in the future. There are various other considerations that drive the free cash flow generation of the company such as low lease operating expense and low capital intensity; our blending strategy to avoid expensive processing fees; and our ability to reuse frac water to maintain a healthy water balance, to name a few. Second, we take the organic free cash flow that we generate and roll in a very modest amount of assets sales, which produce our cumulative free cash flow. Over our 7-year plan, we expect to generate over $3 billion of cumulative free cash flow(a), which leads to the third and last tenet: allocate that free cash flow into the right places at the right times. We are constantly evaluating redeploying capital back into the drill-bit, reducing debt, share buybacks, and M&A. We want to allocate capital to the right places, while maintaining great liquidity. Given the continued weakness in gas macro, our focus remains on debt reduction, which we feel is the best way to maximize the long-term intrinsic value per share of the company at this time."

(1) The Non-GAAP financial measures referenced throughout are defined and reconciled under the caption "Non-GAAP Financial Measures" below.

Second Quarter Financial Results:
The following table represents certain non-GAAP financial measures used by the company:1



Quarter


Quarter




Quarter


Quarter





Ended


Ended




Ended


Ended





June 30, 2020


June 30, 2019




June 30, 2020


June 30, 2019



(Dollars in millions, except per share data)


Stand-alone


% Increase/
(Decrease)


Consolidated


% Increase/
(Decrease)

Adjusted Net (Loss) Income


$

(7)



$

12



(158.3)

%


$

24



$

57



(57.9)

%

Adjusted EBITDAX


$

166



$

175



(5.1)

%


$

212



$

222



(4.5)

%

Capital Expenditures2


$

121



$

226



(46.5)

%


$

135



$

329



(59.0)

%


1The Non-GAAP financial measures in the table above are defined and reconciled to GAAP net (loss) income, under the caption "Non-GAAP Financial Measures" below.

2Capital expenditures exclude $14.0 million and $103.4 million of total capital investment net to CNX Midstream Partners LP ("CNXM") in the second quarter of 2020 and 2019, respectively, as reported in CNXM Second Quarter Results.

Operations:

During the quarter, CNX used up to two horizontal rigs and drilled eight wells. The company currently has one rig in operation along with one frac crew. During the quarter, the company utilized one all-electric frac crew to complete 11 wells, which included eight Southwest Pennsylvania Marcellus Shale wells and three Monroe County, Ohio, Utica Shale wells. In the first quarter, CNX turned-in-line six wells.

During the quarter, volumes decreased due to the temporary shut-in of a portion of CNX's liquids-rich Shirley-Pennsboro production in May and June of 2020 in response to low NGL prices. Additionally, two new pads of dry gas turn-in-lines from April and May were temporarily shut-in May and June due to low natural gas prices. These decisions were made to take advantage of improved gas prices at the start of winter.

CNX's natural gas and liquids production in the quarter came from the following categories:



Quarter


Quarter


Quarter



Ended


Ended


Ended



6/30/2020


6/30/2019


3/31/2020

GAS







Marcellus Sales Volumes (Bcf)


75.3


84.3


87.6

Utica Sales Volumes (Bcf)


21.2


28.1


24.8

CBM Sales Volumes (Bcf)


13.1


13.9


13.2

Other Sales Volumes (Bcf)



0.1


0.1








LIQUIDS(1)







NGLs Sales Volumes (Bcfe)


4.7


7.9


8.3

Oil Sales Volumes (Bcfe)




0.1

Condensate Sales Volumes (Bcfe)


0.2


0.2


0.3








TOTAL (Bcfe)


114.5


134.5


134.4








Average Daily Production (MMcfe)


1,258.3


1,477.6


1,476.5


1NGLs, 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.

 

The following table highlights operating cash margins and fully burdened cash margins:



Quarter


Quarter



Ended


Ended

(Per Mcfe)


June 30, 2020


June 30, 2019

Average Sales Price - E&P


$

2.52



$

2.63


Total Production Cash Costs1


1.05



1.18


Operating Cash Margin


$

1.47



$

1.45


Operating Cash Margin (%)


58

%


55

%






Total Fully Burdened Cash Costs2


$

1.75



$

1.70


Fully Burdened Cash Margin


$

0.77



$

0.93


Fully Burdened Cash Margin (%)


31

%


35

%


1See the "Price and Cost Data Per Mcfe" table below for reconciliation to Total Production Costs.  

2Fully burdened cash costs include production cash costs, selling, general and administrative (SG&A) cash costs, other operating cash expense, other cash (income) expense, and interest expense. Q2 2020 and Q2 2019 total fully burdened cash costs exclude a gain on asset sales of $0.07 per Mcfe and $0.00 per Mcfe, respectively. Q2 2020 and Q2 2019 also excludes unrealized losses on interest rate swaps of $0.05 per Mcfe and $0.00 per Mcfe, respectively.

 

PRICE AND COST DATA PER MCFE — Quarter-to-Quarter Comparison:



Quarter


Quarter


Quarter



Ended


Ended


Ended

(Per Mcfe)


June 30, 2020


June 30, 2019


March 31, 2020

Average Sales Price - Gas


$

1.54



$

2.51



$

1.83


Average Gain on Commodity Derivative Instruments - Cash Settlement- Gas*


$

1.03



$

0.08



$

0.77


Average Sales Price - Oil**


$

5.15



$

8.42



$

7.87


Average Sales Price - NGLs**


$

1.31



$

3.06



$

2.34


Average Sales Price - Condensate**


$

4.20



$

7.56



$

6.28









Average Sales Price - E&P


$

2.52



$

2.63



$

2.59









Lease Operating Expense (LOE)


$

0.09



$

0.15



$

0.07


Production, Ad Valorem, and Other Fees


0.05



0.05



0.05


Transportation, Gathering and Compression


0.91



0.98



0.99


Depreciation, Depletion and Amortization (DD&A)


0.87



0.89



0.87


Total Production Costs


$

1.92



$

2.07



$

1.98









Total Production Cash Costs, before DD&A


$

1.05



$

1.18



$

1.11


Cash Margin, before DD&A


$

1.47



$

1.45



$

1.48



*Excluding gain from hedge monetization in Q2 2020 and Q1 2020.

**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.

Note: "Total Production Costs" excludes Selling, General, and Administration and Other Operating Expenses.

In the second quarter of 2020, total production costs were lower compared to the year-earlier quarter, due to improvements to LOE, transportation, gathering and compression, taxes, and DD&A. The primary driver to the improvement to LOE was a decrease in water disposal costs due to an increase in the reuse of produced water in well completions activity. The primary driver to improvement to transportation, gathering, and compression costs was due to the decline in processing fees due to a drier Marcellus production mix. The full commissioning of the Dry Ridge and Buckland compressor stations throughout the second half of 2019 allowed the majority of the gas produced from the Richhill Marcellus Shale field to avoid processing through blending. 

Marketing:

Total hedged natural gas production in the 2020 third quarter is 88.9(1) Bcf. The annual gas hedge position is shown in the table below:



2020


2021

Volumes Hedged (Bcf), as of 7/8/20


437.4(1)(2)


454.1



1Net of purchased swaps.

2Includes actual settlements of 254.0 Bcf.

In April 2020, CNX monetized and terminated approximately 39 million MMBtus of NYMEX natural gas hedges and a similar quantity of financial basis hedges that were to settle at various times from May through November of 2020. In connection with these monetizations, CNX received $29 million of net proceeds. In addition, during the second quarter of 2020, CNX purchased financial swaps for May through November of 2020 under which CNX will pay a fixed price to and receive a floating price from its hedge counterparties. These moves gave CNX additional flexibility to move production to higher price periods while immediately taking the monetization proceeds.

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's gas hedge position through 2024 as of July 8, 2020, excluding the 2020 purchased swaps, is shown in the table immediately below.



Q3 2020


2020


2021


2022


2023


2024

NYMEX Only Hedges













Volumes (Bcf)


100.2



447.3



413.6



271.7



142.6



145.4


Average Prices ($/Mcf)


$

2.90



$

2.94



$

2.94



$

2.85



$

2.81



$

2.90


Physical Fixed Price Sales and Index Hedges













Volumes (Bcf)


2.8



12.4



22.3



14.2



27.7



11.0


Average Prices ($/Mcf)


$

2.44



$

2.45



$

2.51



$

2.61



$

2.17



$

2.28


Total Volumes Hedged (Bcf)1


103.0



459.7



435.9



285.9



170.3



156.4




























NYMEX + Basis (fully-covered volumes)2













Volumes (Bcf)


103.0



459.7



435.9



285.9



170.3



156.4


Average Prices ($/Mcf)


$

2.47



$

2.55



$

2.46



$

2.32



$

2.25



$

2.32


NYMEX Only Hedges Exposed to Basis













Volumes (Bcf)













Average Prices ($/Mcf)


$



$



$



$



$



$


Total Volumes Hedged (Bcf)1


103.0



459.7



435.9



285.9



170.3



156.4



1Excludes basis hedges in excess of NYMEX hedges in Q3 2020, 2020, 2021, 2022, 2023, and 2024 of 2.1 Bcf, 9.5 Bcf, 18.2 Bcf, 44.2 Bcf, 26.0 Bcf, and 19.1 Bcf, respectively.

2Includes physical sales with fixed basis in Q3 2020, 2020, 2021, and 2022 of 19.4 Bcf, 85.2 Bcf, 74.2 Bcf, and 4.0 Bcf, respectively.

During the second quarter of 2020, CNX added (sold) additional NYMEX natural gas swaps of 1.7 Bcf, 20.5 Bcf, 6.7 Bcf, 6.7 Bcf, 6.8 Bcf, and 0.9 Bcf for 2020, 2021, 2022, 2023, 2024, and 2025, respectively and additional index natural gas swaps of 1.0 Bcf and 0.8 Bcf for 2020 and 2021, respectively.  To help mitigate basis exposure on NYMEX hedges, in the second quarter CNX added 3.1 Bcf, 11.7 Bcf, 28.6 Bcf, 25.2 Bcf, 25.5 Bcf, and 6.8 Bcf of basis hedges for 2020, 2021, 2022, 2023, 2024, and 2025, respectively.

Finance:

At June 30, 2020, CNX's Stand-alone net debt to trailing-twelve-months (TTM) adjusted Stand-alone EBITDAX (including distributions from CNXM) (a non-GAAP measure)(1) was 2.3x. On a consolidated basis, CNX's net debt to TTM adjusted EBITDAX (a non-GAAP measure)(1) was 2.6x.

At June 30, 2020, CNX's credit facility had $550 million of borrowings outstanding and $205 million of letters of credit outstanding.

During the quarter, the company completed the private offering of $345 million aggregate principal amount of its 2.25% convertible senior notes due 2026. The company used the net proceeds to pay down a portion of its 5.875% notes due in 2022. As of June 30, 2020, the company had an aggregate principal balance of its 5.875% notes due in 2022 of approximately $414 million. The company has paid down the aggregate principal amount of these notes by approximately $482 million year-to-date.

CNX did not repurchase any shares of common stock during the second quarter of 2020.

Guidance Update:(a)

2020 Guidance Update:
CNX reaffirms its 2020 production volumes of 490-530 Bcfe. Due to the pricing contango in 2020, the company shut-in certain wells starting in May to take advantage of anticipated higher price months later in the year. If the current gas price contango continues through the summer, the company expects that these shut-in wells will be back online in early November. Even though this would result in the company being at the lower end of the production range, the company would expect to be at the high-end of the adjusted EBITDAX range under this scenario. 

Adjusted EBITDAX(1)


Reaffirmed



2020E

($ in millions, except per share data)


Low


High

Consolidated


$830

-

$900


(1) Updated EBITDAX based on NYMEX forward strip as of July 8, 2020.



Capital Expenditures


Reaffirmed



2020E

($ in millions)


Low


High

Drilling & Completion (D&C)


$330

-

$380

Non-D&C


$140

-

$170

Pro Forma Total Capital


$470

-

$550

In 2020, CNX reaffirms FCF(a) of approximately $300 million.   

2021 Guidance Update:
As previously discussed, the company believes that the decision to manage production through well shut-ins during the second quarter in 2020 will positively impact 2021 results. The company continues to expect the following results in 2021: production volumes of approximately 550 Bcfe, total capital expenditures of approximately $440 million, and EBITDAX(a) of approximately $920 million. Due to the recently-announced CNXM transaction, the company expects FCF(a) of approximately $425 million, which is an increase of $25 million from the previous guidance. If 2021 gas prices strengthen further, the company could produce approximately 600 Bcfe, or if gas prices weaken, the company has the flexibility to reduce activity. The company anticipates that the bulk of the FCF in 2021, like 2020, will be used to reduce the company's absolute debt and leverage ratio. 

2022-2026 Guidance:
CNX expects to shift to a maintenance of production (MOP) plan in 2022-2026. Over this time period, the company continues to expect average production volumes of approximately 560 Bcfe by turning-in-line 25 wells each year on average. Due to the recently-announced CNXM transaction, CNX expects annual FCF(a) for 2022-2026 to average $515 million each year, compared to the previous guidance of $500 million of consolidated FCF.  

2020-2026 Cumulative: 
CNX expects cumulative FCF(a) over its 7-year plan to be over $3.0 billion

(a) CNX is unable to provide a reconciliation of projected financial results contained in this release, including FCF, adjusted EBITDAX, fully burdened cash costs and other metrics 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 and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

CNX Acquiring All Outstanding Common Units of CNX Midstream Partners LP
On July 27, 2020, CNX and CNXM announced that they have entered into a definitive merger agreement pursuant to which CNX will acquire all of the outstanding common units of CNXM that it does not already own in exchange for CNX common stock valued at approximately $357 million, based on the most recent closing price of CNX common stock.

Video Presentation 
CNX has pre-recorded a video presentation that not only thoroughly examines the take-private transaction, but also reviews the CNX investment thesis and why the company believes it is a non-replicable, best-in-class E&P company. The video can be accessed at: https://vimeo.com/441806879, or by visiting the "Investor Relations" page of CNX's website at www.cnx.com, or on the 'News and Events' page of the CNX Midstream website at cnxmidstream.com. Presentation materials are available on each company's website.

Earnings Conference Call Details
As previously disclosed, CNX will hold its earnings call for the second quarter on Thursday, July 30. 

CNX Resources (NYSE: CNX)

  • 10:00 a.m. ET: Thursday, July 30
  • Dial-In: 855-656-0928 (domestic) 412-902-4112 (international)
  • Reference "CNX Resources Call"
  • Webcast: investors.cnx.com

About CNX

CNX Resources Corporation (NYSE: CNX) is one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin. The company deploys an organic growth strategy focused on responsibly developing its resource base. As of December 31, 2019, CNX had 8.4 trillion cubic feet equivalent of proved natural gas reserves. The company is a member of the Standard & Poor's Midcap 400 Index. Additional information may be found at www.cnx.com.

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. Stand-alone results include both CNX's Exploration & Production (E&P) and Unallocated segments (but not the Midstream segment) plus distributions CNX receives from CNXM. CNX believes that providing stand-alone results provides investors with more transparency and a better ability to compare CNX's financial results to those of our peer group. The term "consolidated" includes 100% of the results of CNX, CNX Gathering LLC, and CNXM on a consolidated basis.

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 consolidated is defined as EBITDAX after adjusting for the discrete items listed below. Stand-alone EBITDAX is defined as the adjusted EBITDAX related to both CNX's E&P and Unallocated segments (See Note 24 - Segment Information in CNX's Annual Report on Form 10-K as filed with the Securities and Exchange Commission for more information) plus the distributions CNX receives during the current period from CNXM related to its limited partnership units (including general partner units, and incentive distribution rights (IDRs) prior to the IDR elimination transaction in the first quarter of 2020). Although EBIT, EBITDAX, Stand-alone EBITDAX and adjusted EBITDAX consolidated 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, Stand-alone EBITDAX or adjusted EBITDAX consolidated identically, the presentation here may not be comparable to similarly titled measures of other companies. Adjusted EBITDAX per outstanding share, adjusted net income per outstanding share, Stand-alone EBITDAX and adjusted EBITDAX consolidated are not measures of performance calculated in accordance with generally accepted accounting principles. Management believes that these financial measures are useful to an investor in evaluating CNX Resources because (i) analysts utilize these metrics when evaluating company performance and, (ii) given that we have an active share repurchase program, analysts have requested this information as of a recent practicable date, and we want to provide updated information to investors. 

Reconciliation of EBIT, EBITDAX, adjusted EBITDAX consolidated, Stand-alone EBITDAX, adjusted net income, net debt, organic free cash flow, free cash flow and TTM EBITDAX to the most directly comparable GAAP financial measures is as follows:


Three Months Ended


June 30, 2020

Dollars in thousands

Stand-alone1


Midstream


Total Company

Net (Loss) Income

$

(160,781)



$

30,295



$

(130,486)


Interest Expense

37,638



8,618



46,256


Interest Income

(322)



(1)



(323)


Income Tax Benefit

(28,646)





(28,646)


Earnings Before Interest & Taxes (EBIT)

$

(152,111)



$

38,912



$

(113,199)


Depreciation, Depletion & Amortization

102,901



10,644



113,545


Exploration Expense

3,093



217



3,310


Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)

$

(46,117)



$

49,773



$

3,656


Adjustments:






Unrealized Loss on Commodity Derivative Instruments

$

205,558



$



$

205,558


Loss on Debt Extinguishment

344





344


Stock-Based Compensation

2,186



380



2,566


Severance Expense

120





120


Total Pre-tax Adjustments

$

208,208



$

380



$

208,588


Adjusted EBITDAX Consolidated

$

162,091



$

50,153



$

212,244


Midstream Distributions

3,954



N/A



N/A


Stand-alone EBITDAX

$

166,045



N/A



N/A



1 Stand-alone includes both CNX's E&P and Unallocated segments. See Note 24 - Segment Information in CNX's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission, for more information.

 


Three Months Ended


June 30, 2019

Dollars in thousands

Stand-alone1


Midstream


Total Company

Net Income

$

148,281



$

44,413



$

192,694


Interest Expense

32,467



7,685



40,152


Interest Income

(71)





(71)


Income Tax Expense

40,791





40,791


Earnings Before Interest & Taxes (EBIT)

$

221,468



$

52,098



$

273,566


Depreciation, Depletion & Amortization

120,705



8,294



128,999


Exploration Expense

5,567





5,567


Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)

$

347,740



$

60,392



$

408,132


Adjustments:






Unrealized Gain on Commodity Derivative Instruments

$

(210,909)



$



$

(210,909)


Severance Expense

1,182





1,182


Loss on Debt Extinguishment

77





77


Stock-Based Compensation

23,333



540



23,873


Total Pre-tax Adjustments

$

(186,317)



$

540



$

(185,777)


Adjusted EBITDAX Consolidated

$

161,423



$

60,932



$

222,355


Midstream Distributions

13,251



N/A



N/A


Stand-alone EBITDAX

$

174,674



N/A



N/A



1 Stand-alone includes both CNX's E&P and Unallocated segments. See Note 24 - Segment Information in CNX's Annual Report on Form 10-K for fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission, for more information.

 

Reconciliation of Adjusted Net Income



Three Months Ended


Three Months Ended


June 30,


June 30,


2020


2019


2020


2019

Dollars in thousands

Stand-alone1


Stand-alone1


Total Company


Total Company

Net (Loss) Income from EBITDAX Reconciliation

$

(160,781)



$

148,281



$

(130,486)



$

192,694


Adjustments:








Total Pre-tax Adjustments from EBITDAX Reconciliation

208,208



(186,317)



208,588



(185,777)


Tax Effect of Adjustments

(54,409)



50,530



(54,508)



50,383


Adjusted Net (Loss) Income

$

(6,982)



$

12,494



$

23,594



$

57,300



1 Stand-alone includes both CNX's E&P and Unallocated segments. See Note 24 - Segment Information in CNX's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission, for more information.

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 attributable to CNX Resources shareholders 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

June 30, 2020


Stand-alone1


Midstream


Total Company

Total Long-Term Debt (GAAP)2

$

1,849,563



$

713,635



$

2,563,198


Less: Cash and Cash Equivalents

23,725



2,196



25,921


Net Debt (Non-GAAP)

$

1,825,838



$

711,439



$

2,537,277



1Stand-alone includes both CNX's E&P and Unallocated segments.

2Includes current portion. 

 

Reconciliation of Trailing-Twelve-Months (TTM) EBITDAX by Quarter



Three Months
Ended


Twelve Months
Ended


September 30,


December 31,


March 31,


June 30,


June 30,

Dollars in thousands

2019


2019


2020


2020


2020

Net Income (Loss)

$

143,960



$

(240,055)



$

(305,222)



$

(130,486)



$

(531,803)


Interest Expense

38,405



37,051



48,995



46,256



170,707


Interest Income

(1,078)



(78)



(92)



(323)



(1,571)


Income Tax Expense (Benefit)

48,902



(50,398)



(152,582)



(28,646)



(182,724)


Earnings Before Interest & Taxes (EBIT)

$

230,189



$

(253,480)



$

(408,901)



$

(113,199)



$

(545,391)


Depreciation, Depletion & Amortization

120,459



133,844



129,164



113,545



497,012


Exploration Expense

6,075



29,480



3,888



3,310



42,753


Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)

$

356,723



$

(90,156)



$

(275,849)



$

3,656



$

(5,626)


Adjustments:










Unrealized (Gain) Loss on Commodity Derivative Instruments

$

(156,872)



$

(92,538)



$

36,019



$

205,558



$

(7,833)


Impairment of Exploration and Production Properties



327,400



61,849





389,249


Impairment of Unproved Properties and Expirations



119,429







119,429


Impairment of Goodwill





473,045





473,045


Severance Expense

1,999



113



105



120



2,337


Stock Based Compensation

1,781



1,868



6,840



2,566



13,055


(Gain) Loss on Debt Extinguishment





(11,263)



344



(10,919)


Shaw Insurance Recovery



(2,159)







(2,159)


Total Pre-tax Adjustments

$

(153,092)



$

354,113



$

566,595



$

208,588



$

976,204


Adjusted EBITDAX Consolidated TTM

$

203,631



$

263,957



$

290,746



$

212,244



$

970,578


 

Reconciliation of Stand-alone EBITDAX Trailing-Twelve-Months (TTM)



Twelve Months Ended June 30, 2020

Dollars in thousands

Stand-alone1


Midstream


Total Company

Net Loss

$

(222,210)



$

(309,593)



$

(531,803)


Interest Expense

137,978



32,729



170,707


Interest Income

(1,558)



(13)



(1,571)


Income Tax Benefit

(182,724)





(182,724)


Earnings Before Interest & Taxes  (EBIT)

$

(268,514)



$

(276,877)



$

(545,391)


Depreciation, Depletion & Amortization

458,624



38,388



497,012


Exploration Expense

42,423



330



42,753


Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)

$

232,533



$

(238,159)



$

(5,626)


Adjustments:






Unrealized Gain on Commodity Derivative Instruments

$

(7,833)



$



$

(7,833)


Impairment of Exploration and Production Properties

389,249





389,249


Impairment of Unproved Properties and Expirations

119,429





119,429


Impairment of Goodwill



473,045



473,045


Severance Expense

1,901



436



2,337


Stock Based Compensation

11,444



1,611



13,055


Gain on Debt Extinguishment

(10,919)





(10,919)


Shaw Insurance Recovery

(2,159)





(2,159)


Total Pre-tax Adjustments

$

501,112



$

475,092



$

976,204


Adjusted EBITDAX Consolidated TTM

$

733,645



$

236,933



$

970,578


Midstream Distributions

53,650



N/A



N/A


Stand-alone EBITDAX TTM

$

787,295



N/A



N/A



1 Stand-alone includes both CNX's E&P and Unallocated Segments.

Organic free cash flow is defined as net cash provided by operating activities less capital expenditures.  Free cash flow is defined as net cash provided by operating activities less capital expenditures plus proceeds from asset sales. Organic free cash flow and free cash flow are non-GAAP supplemental financial measures that the Company's management and external users of its consolidated financial statements, such as industry analysts, lenders and ratings agencies use to assess the Company's liquidity. The Company believes that the measures provide useful information to management and investors in assessing the Company's ability to generate cash flow in excess of capital requirements and return cash to shareholders. Organic free cash flow and 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.

The tables below reconcile organic free cash flow and free cash flow with net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP, as derived from the Statements of Condensed Consolidated Cash Flows to be included in the Company's report on Form 10-Q for the quarter ended June 30, 2020.

Organic Free Cash Flow


Dollars in thousands

Three Months
Ended June 30,
2020


Three Months
Ended June 30,
2019

Net Cash Provided by Operating Activities

$

143,798



$

252,021


Capital Expenditures

(134,852)



(329,227)


Organic Free Cash Flow

$

8,946



$

(77,206)




Free Cash Flow


Dollars in thousands

Three Months
Ended June 30,
2020


Three Months
Ended June 30,
2019

Net Cash Provided by Operating Activities

$

143,798



$

252,021


Capital Expenditures

(134,852)



(329,227)


Proceeds from Asset Sales

12,151



1,281


Free Cash Flow

$

21,097



$

(75,925)


Cautionary Statements

We are including the following cautionary statement in this press release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of us. With the exception of historical matters, the matters discussed in this press release are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act")) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," "will," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe a strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements unless required by securities law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following: prices for natural gas and NGLs are volatile and can fluctuate widely based upon a number of factors beyond our control including oversupply relative to the demand for our products, weather and the price and availability of alternative fuels; our dependence on gathering, processing and transportation facilities and other midstream facilities owned by CNX Midstream Partners LP (NYSE: CNXM) (CNXM) and others; uncertainties in estimating our economically recoverable natural gas reserves, and inaccuracies in our estimates; the high-risk nature of drilling, developing and operating natural gas wells; our identified drilling locations are scheduled out over multiple years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their development or drilling; challenges associated with strategic determinations, including the allocation of capital and other resources to strategic opportunities; the substantial capital expenditures required for our development and exploration projects, as well as CNXM's midstream system development; the impact of potential, as well as any adopted, environmental regulations, including those relating to greenhouse gas emissions; environmental regulations can increase costs and introduce uncertainty that could adversely impact the market for natural gas with potential short and long-term liabilities; decreases in the availability of, or increases in the price of, required personnel, services, equipment, parts and raw materials in sufficient quantities or at reasonable costs to support our operations; if natural gas prices decrease or drilling efforts are unsuccessful, we may be required to record write-downs of our proved natural gas properties; the availability of storage capacity for refined products such as crude, and refinery inputs including condensate, c5+ and butane; changes in assumptions impacting management's estimates of future financial results as well as other assumptions such as movement in our stock price, weighted-average cost of capital, terminal growth rates and industry multiples, could cause goodwill and other intangible assets we hold to become impaired and result in material non-cash charges to earnings; a loss of our competitive position because of the competitive nature of the natural gas industry, consolidation within the industry or overcapacity in the industry adversely affecting our ability to sell our products and midstream services; deterioration in the economic conditions in any of the industries in which our customers operate, a domestic or worldwide financial downturn, or negative credit market conditions; the impact of outbreaks of communicable diseases such as the novel highly transmissible and pathogenic coronavirus ("COVID-19") on business activity, the company's operations and national and global economic conditions, generally; hedging activities may prevent us from benefiting from price increases and may expose us to other risks; existing and future government laws, regulations and other legal requirements and judicial decisions that govern our business may increase our costs of doing business and may restrict our operations; significant costs and liabilities may be incurred as a result of pipeline operations and related increase in the regulation of gas gathering pipelines; our ability to find adequate water sources for our use in shale gas drilling and production operations, or our ability to dispose of, transport or recycle water used or removed in connection with our gas operations at a reasonable cost and within applicable environmental rules; failure to successfully estimate the rate of decline or existing reserves or to find or acquire economically recoverable natural gas reserves to replace our current natural gas reserves; risks associated with our current long-term debt obligations; a decrease in our borrowing base, which could decrease for a variety of reasons including lower natural gas prices, declines in natural gas proved reserves, asset sales and lending requirements or regulations; changes in federal or state income tax laws, cyber incidents could have a material adverse effect on our business, financial condition or results of operations; construction of new gathering, compression, dehydration, treating or other midstream assets by CNXM may not result in revenue increases and may be subject to environmental, political, legal and economic risks; our success depends on key members of our management and our ability to attract and retain experienced technical and other professional personnel; terrorist activities could materially adversely affect our business and results of operations; we may operate a portion of our business with one or more joint venture partners or in circumstances where we are not the operator, which may restrict our operational and corporate flexibility and we may not realize the benefits we expect to realize from a joint venture; acquisitions and divestitures, we anticipate may not occur or produce anticipated benefits; the outcomes of various legal proceedings, including those which are more fully described in our reports filed under the Exchange Act; there is no guarantee that we will continue to repurchase shares of our common stock under our current or any future share repurchase program at levels undertaken previously or at all; negative public perception regarding our industry could have an adverse effect on our operations; CONSOL Energy may not be able to satisfy its indemnification obligations in the future and such indemnities may not be sufficient to hold us harmless from the full amount of liabilities for which CONSOL Energy will be allocated responsibility ; risks associated with the company's issuance of convertible senior notes due 2026 (the "convertible notes"), including the potential impact that the convertible notes may have on our reported financial results, potential dilution, the company's ability to raise funds to repurchase the convertible notes, and that provisions of the convertible notes could delay or prevent a beneficial takeover of the company; the potential impact of the capped call transaction undertaken in tandem with the convertible note issuance, including counterparty risk; the possibility that the market price of the company's common stock will fluctuate prior to the completion of the take-private transaction causing the value of the merger consideration to change; the risk that a condition to the closing of the take-private transaction may not be satisfied on a timely basis, if at all; the timing of the completion of the take-private transaction; the substantial transaction-related costs that may be incurred by the company and CNXM in connection with the take-private transaction; the possibility that the company and CNXM may, under certain specified circumstances, be responsible for the other party's expenses; the possibility that the company and CNXM may be the targets of securities class actions and derivative lawsuits; the limited duties CNXM's partnership agreement places on CNXM's general partner (the "general partner") for actions taken by the general partner; the risk that certain officers and directors of the company and the general partner have interests in the take-private transaction that are different from, or in addition to, the interests they may have as CNXM's unitholders or the company's stockholders, respectively; and the possibility that financial projections by the company and CNXM may not prove to be reflective of actual future results.

Although forward-looking statements reflect the company's good faith beliefs at the time they are made, they involve known and unknown risks, uncertainties and other factors. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, including, among others, that the company's business plans may change as circumstances warrant, please refer to the "Risk Factors" and "Forward-Looking Statements" sections of the company's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Commission on February 10, 2020 and subsequent Quarterly Reports on Form 10-Q. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME



(Dollars in thousands, except per share data)

Three Months Ended


Six Months Ended

(Unaudited)

June 30,


June 30,

Revenue and Other Operating Income:

2020


2019


2020


2019

Natural Gas, NGL and Oil Revenue

$

175,776



$

342,865



$

427,270



$

778,811


(Loss) Gain on Commodity Derivative Instruments

(63,303)



221,581



51,839



26,205


Purchased Gas Revenue

20,424



18,768



46,783



34,989


Midstream Revenue

12,191



18,895



30,597



37,338


Other Operating Income

3,753



2,923



8,711



6,120


Total Revenue and Other Operating Income

148,841



605,032



565,200



883,463


Costs and Expenses:








Operating Expense








Lease Operating Expense

10,244



19,876



20,277



38,504


Transportation, Gathering and Compression

60,025



84,614



143,267



164,023


Production, Ad Valorem, and Other Fees

5,384



7,030



11,546



13,976


Depreciation, Depletion and Amortization

113,545



128,999



242,709



254,159


Exploration and Production Related Other Costs

3,310



5,567



7,197



8,825


Purchased Gas Costs

19,989



18,772



44,987



34,986


Impairment of Exploration and Production Properties





61,849




Impairment of Goodwill





473,045




Selling, General, and Administrative Costs

23,419



48,970



53,657



84,709


Other Operating Expense

26,596



17,976



47,277



41,451


Total Operating Expense

262,512



331,804



1,105,811



640,633


Other Expense








Other Expense (Income)

4,799



(99)



9,985



(681)


(Gain) Loss on Asset Sales and Abandonments

(5,938)



(387)



(17,992)



2,699


Loss (Gain) on Debt Extinguishment

344



77



(10,919)



7,614


Interest Expense

46,256



40,152



95,252



75,923


Total Other Expense

45,461



39,743



76,326



85,555


Total Costs and Expenses

307,973



371,547



1,182,137



726,188


(Loss) Earnings Before Income Tax

(159,132)



233,485



(616,937)



157,275


Income Tax (Benefit) Expense

(28,646)



40,791



(181,228)



29,231


Net (Loss) Income

(130,486)



192,694



(435,709)



128,044


Less: Net Income Attributable to Noncontrolling Interest

15,263



30,217



39,126



52,904


Net (Loss) Income Attributable to CNX Resources Shareholders

$

(145,749)



$

162,477



$

(474,835)



$

75,140










(Loss) Earnings per Share








Basic

$

(0.78)



$

0.85



$

(2.54)



$

0.39


Diluted

$

(0.78)



$

0.84



$

(2.54)



$

0.38










Dividends Declared

$



$



$



$


 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 




Three Months Ended


Six Months Ended

(Dollars in thousands)

June 30,


June 30,

(Unaudited)

2020


2019


2020


2019

Net (Loss) Income

$

(130,486)



$

192,694



$

(435,709)



$

128,044


Other Comprehensive Income:








  Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($39), ($14), ($79), ($29))

111



41



223



85










Comprehensive (Loss) Income

(130,375)



192,735



(435,486)



128,129










Less: Comprehensive Income Attributable to Noncontrolling Interest

15,263



30,217



39,126



52,904










Comprehensive (Loss) Income Attributable to CNX Resources Shareholders

$

(145,638)



$

162,518



$

(474,612)



$

75,225


 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




(Unaudited)



(Dollars in thousands)

June 30,
2020


December 31,
2019

ASSETS




Current Assets:




Cash and Cash Equivalents

$

19,607



$

16,283


Restricted Cash

738




Accounts and Notes Receivable:




Trade, net

69,174



133,480


Other Receivables, net

7,669



13,679


Supplies Inventories

10,317



6,984


Recoverable Income Taxes

114,440



62,425


Derivative Instruments

197,804



247,794


Prepaid Expenses

10,973



17,456


Total Current Assets

430,722



498,101


Property, Plant and Equipment:




Property, Plant and Equipment

10,814,035



10,572,006


Less—Accumulated Depreciation, Depletion and Amortization

3,730,232



3,435,431


Total Property, Plant and Equipment—Net

7,083,803



7,136,575


Other Non-Current Assets:




Operating Lease Right-of-Use Assets

141,198



187,097


Investment in Affiliates

15,159



16,710


Derivative Instruments

212,657



314,096


Goodwill

323,314



796,359


Other Intangible Assets

93,371



96,647


Restricted Cash

5,576




Other

13,884



15,221


Total Other Non-Current Assets

805,159



1,426,130


TOTAL ASSETS

$

8,319,684



$

9,060,806


 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




(Unaudited)



(Dollars in thousands, except per share data)

June 30,
2020


December 31,
2019

LIABILITIES AND EQUITY




Current Liabilities:




Accounts Payable

$

148,345



$

202,553


Derivative Instruments

83,527



41,466


Current Portion of Finance Lease Obligations

7,295



7,164


Current Portion of Long-Term Debt

22,430




Current Portion of Operating Lease Obligations

52,110



61,670


Other Accrued Liabilities

162,817



216,086


Total Current Liabilities

476,524



528,939


Non-Current Liabilities:




Long-Term Debt

2,540,768



2,754,443


Finance Lease Obligations

4,225



7,706


Operating Lease Obligations

79,701



110,466


Derivative Instruments

178,187



115,862


Deferred Income Taxes

370,412



476,108


Asset Retirement Obligations

62,543



63,377


Other

40,370



41,596


Total Non-Current Liabilities

3,276,206



3,569,558


TOTAL LIABILITIES

3,752,730



4,098,497


Stockholders' Equity:




Common Stock, $.01 Par Value; 500,000,000 Shares Authorized, 187,431,492 Issued and Outstanding at June 30, 2020; 186,642,962 Issued and Outstanding at December 31, 2019

1,878



1,870


Capital in Excess of Par Value

2,261,729



2,199,605


Preferred Stock, 15,000,000 shares authorized, None issued and outstanding




Retained Earnings

1,495,197



1,971,676


Accumulated Other Comprehensive Loss

(12,382)



(12,605)


Total CNX Resources Stockholders' Equity

3,746,422



4,160,546


Noncontrolling Interest

820,532



801,763


TOTAL STOCKHOLDERS' EQUITY

4,566,954



4,962,309


TOTAL LIABILITIES AND EQUITY

$

8,319,684



$

9,060,806


 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



(Dollars in thousands)
(Unaudited)

Common
Stock


Capital in
Excess of
Par Value


Retained
Earnings
(Deficit)


Accumulated
Other
Comprehensive
Income (Loss)


Total CNX
Resources
Stockholders'
Equity


Non-
Controlling
Interest


Total Equity

March 31, 2020

$

1,874



$

2,205,941



$

1,641,009



$

(12,493)



$

3,836,331



$

808,379



$

4,644,710


Net (Loss) Income





(145,749)





(145,749)



15,263



(130,486)


Issuance of Common Stock

4



1,646







1,650





1,650


Shares Withheld for Taxes





(63)





(63)





(63)


Amortization of Stock-Based Compensation Awards



2,186







2,186



380



2,566


Equity Component of Convertible Senior Notes, net of Issuance Costs



78,307







78,307





78,307


Purchase of Capped Call



(26,351)







(26,351)





(26,351)


Other Comprehensive Income







111



111





111


Distributions to CNXM Noncontrolling Interest Holders











(3,490)



(3,490)


June 30, 2020

$

1,878



$

2,261,729



$

1,495,197



$

(12,382)



$

3,746,422



$

820,532



$

4,566,954


(Dollars in thousands)
(Unaudited)














March 31, 2019

$

1,964



$

2,249,511



$

1,971,898



$

(7,860)



$

4,215,513



$

759,296



$

4,974,809


Net Income





162,477





162,477



30,217



192,694


Issuance of Common Stock

3



59







62





62


Purchase and Retirement of Common Stock

(88)



(68,934)



(5,261)





(74,283)





(74,283)


Shares Withheld for Taxes





(1,487)





(1,487)



(25)



(1,512)


Amortization of Stock-Based Compensation Awards



23,333







23,333



540



23,873


Other Comprehensive Income







41



41





41


Distributions to CNXM Noncontrolling Interest Holders











(15,689)



(15,689)


June 30, 2019

$

1,879



$

2,203,969



$

2,127,627



$

(7,819)



$

4,325,656



$

774,339



$

5,099,995


 

CNX RESOURCES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



(Dollars in thousands)

Common
Stock


Capital in
Excess of
Par Value


Retained
Earnings
(Deficit)


Accumulated
Other
Comprehensive
Income (Loss)


Total CNX
Resources
Stockholders'
Equity


Non-
Controlling
Interest


Total
Equity

December 31, 2019

$

1,870



$

2,199,605



$

1,971,676



$

(12,605)



$

4,160,546



$

801,763



$

4,962,309


(Unaudited)














Net (Loss) Income





(474,835)





(474,835)



39,126



(435,709)


Issuance of Common Stock

8



1,646







1,654





1,654


Shares Withheld for Taxes





(1,644)





(1,644)



(309)



(1,953)


Amortization of Stock-Based Compensation Awards



8,522







8,522



884



9,406


Equity Component of Convertible Senior Notes, net of Issuance Costs



78,307







78,307





78,307


Purchase of Capped Call



(26,351)







(26,351)





(26,351)


Other Comprehensive Income







223



223





223


Distributions to CNXM Noncontrolling Interest Holders











(20,932)



(20,932)


June 30, 2020

$

1,878



$

2,261,729



$

1,495,197



$

(12,382)



$

3,746,422



$

820,532



$

4,566,954


(Dollars in thousands)














December 31, 2018

$

1,990



$

2,264,063



$

2,071,809



$

(7,904)



$

4,329,958



$

751,785



$

5,081,743


(Unaudited)














Net Income





75,140





75,140



52,904



128,044


Issuance of Common Stock

8



153







161





161


Purchase and Retirement of Common Stock

(119)



(93,871)



(13,790)





(107,780)





(107,780)


Shares Withheld for Taxes





(5,532)





(5,532)



(690)



(6,222)


Amortization of Stock-Based Compensation Awards



33,624







33,624



1,152



34,776


Other Comprehensive Income







85



85





85


Distributions to CNXM Noncontrolling Interest Holders











(30,812)



(30,812)


June 30, 2019

$

1,879



$

2,203,969



$

2,127,627



$

(7,819)



$

4,325,656



$

774,339



$

5,099,995


 

CNX RESOURCES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 



(Dollars in thousands)

Three Months Ended


Six Months Ended

(Unaudited)

June 30,


June 30,

Cash Flows from Operating Activities:

2020


2019


2020


2019

Net (Loss) Income

$

(130,486)



$

192,694



$

(435,709)



$

128,044


Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities:








Depreciation, Depletion and Amortization

113,545



128,999



242,709



254,159


Amortization of Deferred Financing Costs

6,348



2,701



8,795



4,408


Impairment of Exploration and Production Properties





61,849




Impairment of Goodwill





473,045




Stock-Based Compensation

2,566



23,873



9,406



34,776


(Gain) Loss on Asset Sales and Abandonments

(5,938)



(387)



(17,992)



2,699


Loss (Gain) on Debt Extinguishment

344



77



(10,919)



7,614


Loss (Gain) on Commodity Derivative Instruments

63,303



(221,581)



(51,839)



(26,205)


Loss on Other Derivative Instruments

3,598





14,237




Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments

142,256



10,672



293,417



(30,710)


Deferred Income Taxes

(25,683)



40,790



(125,429)



29,231


Equity in Loss (Earnings) of Affiliates

1,260



(527)



1,421



(1,030)


Return on Equity Investment

131



750



131



2,056


Changes in Operating Assets:








Accounts and Notes Receivable

24,631



31,511



68,270



125,991


Recoverable Income Taxes

821





(52,015)



35,888


Supplies Inventories

(51)



5,400



(3,333)



(1,527)


Prepaid Expenses

1,832



326



6,542



4,287


Changes in Other Assets

(296)



(98)



396



(105)


Changes in Operating Liabilities:








Accounts Payable

(17,810)



35,308



(15,488)



29,346


Accrued Interest

(495)



2,870



(5,558)



5,050


Other Operating Liabilities

(35,994)



(1,958)



(49,620)



(36,392)


Changes in Other Liabilities

(84)



601



(1,131)



(6,907)


Net Cash Provided by Operating Activities

143,798



252,021



411,185



560,673


Cash Flows from Investing Activities:








Capital Expenditures

(134,852)



(329,227)



(286,901)



(628,365)


Proceeds from Asset Sales

12,151



1,281



26,126



7,087


Net Cash Used in  Investing Activities

(122,701)



(327,946)



(260,775)



(621,278)


Cash Flows from Financing Activities:








Payments on Miscellaneous Borrowings

(1,777)



(1,768)



(3,569)



(3,515)


Payments on Long-Term Notes

(408,985)





(468,865)



(405,876)


Net (Payments on) Proceeds from CNXM Revolving Credit Facility

(28,000)



71,350



7,250



124,000


Net Proceeds from (Payments on) CNX Revolving Credit Facility

113,000



116,000



(111,000)



18,000


Proceeds from Issuance of CNX Senior Notes







500,000


Net (Payments on) Proceeds from CSG Non-Revolving Credit Facilities

(3,667)





169,583




Proceeds from Issuance of Convertible Senior Notes

334,650





334,650




Purchase of Capped Call Related to Convertible Senior Notes

(35,673)





(35,673)




Distributions to CNXM Noncontrolling Interest Holders

(3,489)



(15,689)



(20,932)



(30,812)


Proceeds from Issuance of Common Stock

1,650



62



1,654



161


Shares Withheld for Taxes

(63)



(1,512)



(1,953)



(6,222)


Purchases of Common Stock



(77,282)





(109,780)


Debt Issuance and Financing Fees

(848)



(6,597)



(11,917)



(9,938)


Net Cash (Used in) Provided by Financing Activities

(33,202)



84,564



(140,772)



76,018


Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash

(12,105)



8,639



9,638



15,413


Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

38,026



23,972



16,283



17,198


Cash, Cash Equivalents, and Restricted Cash at End of Period

$

25,921



$

32,611



$

25,921



$

32,611


 

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SOURCE CNX Resources Corporation

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