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About Cnx Resources Corporation

CNX Resources digs the Appalachia scene. A top independent oil & gas company in the US, CNX engages in exploration, development, production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. Its operations are centered on unconventional shale formations, primarily the Marcellus Shale and Utica Shale, covering parts of Pennsylvania, West Virginia, and Virginia. The company boasts 7.6 Tcfe of proved reserves in 4.4 million net acres of land. CNX has an average production of 1.1 Mcfe per day from about 12,850 net wells, with more than 18 years of reserve life ratio.


CNX Resources reports four business segments—Marcellus, Utica, Coalbed Methane, and Other Gas. Marcellus accounts for more than half of annual sales. Utica and Coalbed methane each bring in some 20% of revenue.

CNX holds 530,000 net Marcellus Shale acres, 652,000 net Utica Shale, as well as the rights to extract Coalbed Methane in Virginia (267,000 net acres) and 906,000 net acres in West Virginia and southwestern Pennsylvania.

Within its Other Gas segment, CNX has the rights to extract natural gas from shallow oil and gas positions primarily in Illinois, Indiana, Kentucky, New York, Pennsylvania, Virginia, and West Virginia, totaling 1.4 million net acres.

CNX builds and operates extensive natural gas gathering systems to move gas from the wellhead to interstate pipelines and local sales points. This includes 5,000 miles of gas pipelines, 250,000 horsepower of compression, and several natural gas processing facilities.

Geographic Reach

CNX holds 530,000 net acres in the Marcellus Shale and approximately 652,000 net acres of the Utica Shale potential in West Virginia, and Pennsylvania. It also has approximately 2.2 million net acres in the coalbed methane play in Illinois, Indiana, Kentucky, New York, Pennsylvania, Virginia, and West Virginia.

Sales and Marketing

CNX produces its own gas and purchases additional gas produced by third parties at market prices, reselling it to end users or gas marketers at current market prices. The company has developed a diversified portfolio of firm transportation capacity options while minimizing transportation costs. It also benefits from having its production areas near a large concentration of major pipelines and pending projects will increase the take-away capacity. The company’s two largest customers, Direct Energy Business Marketing LLC and NJR Energy Services Company, each accounted for over 10% of sales.

Financial Performance

CNX has seen revenue plummet steadily from a peak of $4.6 billion in 2009 to a decade-low of $741 million in 2015, before starting to crawl back up in the following two years. The decline has come from a combination of low gas prices and asset sell-offs. Other than two years of losses ($1.2 billion in 2015-16), CNX has been profitable in the last decade, though net income has fluctuated wildly between $660 million in 2013, followed by a low of $163 million in 2014. 

In 2017, revenue burgeoned some 90% to $1.5 billion. The majority of this growth came from a gain of $207 million on commodity derivative instruments (compared to a loss of $141 million in 2016). This was further assisted by a 42% year-over-year increase in sales of natural gas, NGLs, and oil, primarily due to a 35% hike in the average gas sales. 

Coming out of two years of straight losses, CNX posted $381 million in profits for 2017 (net loss in 2016: $848 million). A year-over-year $695 million upturn in net sales, followed by an increase of $175 million, earned from asset sell-offs, led to the good fortune. 

Cash holdings of the company was $509 million. Operations generated $649 million, and a further $68 million flowed in from financial activities (primarily from proceeds of CONSOL Energy spinoff). This was offset by $222 million used in investments, mostly in CAPEX ($633 million in 2017).


To focus solely on gas plays in Appalachia, CNX spun off into two separate independent companies in 2017—CNX Resources (gas exploration & production) and CONSOL Energy (coal).  

With the spinoff complete, CNX resources, the new entity, is focusing on natural gas production efficiency and expanding its reserves within its operating area. The company's already extensive holdings in the Marcellus and Utica shale plays provide multi-year drilling opportunties at a low risk growth profile. To consolidate operations, CNX sold off its Utica shale holdings in Ohio in 2018 for $400 million.  

Operational excellence shows in its 2017 performance. The company recorded its highest gas production ever at 407.2 Bcfe, 3% higher than 2016. Proved reserves rose to 7.6 Tcfe, 21% higher than 2016. In a decade, CNX's natural gas business has grown by an impressive 625%. 

Two added advantages provide further growth opportunities. First, the cost of gas production is declining, falling almost 4% less since 2016, at $2.23 per Mcfe. Secondly, natural gas may soon become a more significant contributor to the domestic electric generation mix. Also, the company expects larger exports due to rising demand in Mexico and Canada. Given these scenarios, CNX is planning to increase its gas production to 550 Bcfe for 2018. CNX has set aside $880 million on CAPEX for the year. 

Mergers and Acquisitions

CNX Resources (along with CNX Midstream Partners) acquired former joint venture partner Noble Energy’s 50% membership interest in Canonsburg-based pipeline and natural gas gathering master limited partnership, better known as CONE Gathering. The January 2018 deal was closed for $305 million. CONE Midstream was renamed CNX Midstream Partners as part of the deal. 

Company Background

CNX Resources has a 150-year legacy through its previous entity CONSOL Energy. The company has direct lineage to John D. Rockefeller’s Standard Oil Company and to Andrew Mellon of Appalachia coal fame. 

Cnx Resources Corporation

Canonsburg, PA 15317-6506
Phone: 1 (724) 485-4000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CNX
Stock Exchange: , NYSE
President and CEO: Nicholas J. DeIuliis
EVP and Chief Administrative Officer: Stephen W. Johnson
Chairman: William N. Thorndike
Employees (This Location): 400
Employees (All Locations): 564

Major Office Locations

Canonsburg, PA

Other Locations

Baltimore, MD
Canonsburg, PA
East Millsboro, PA
Cedar Bluff, VA