CNX Resources : Second Quarter 2021 Earnings Call Slides
07/29/2021 | 06:57am EDT
Q2 2021 Update
July 29, 2021
Q2 2021 Highlights
"CNX continued to successfully execute its plan by delivering another quarter of positive free cash flow, reducing absolute debt, and continuing share buybacks at attractive pricing," commented Nick DeIuliis, president and CEO. "Our ability to consistently generate significant, sustainable free cash flow, and reduce debt and return capital to shareholders is special and continues to differentiate CNX from others in our industry and beyond."
Free cash flow (FCF)(1) of $117 million, or sixth consecutive quarter of positive FCF generation
2021E FCF(1) guidance increased $25 million to approximately $475 million
7-year(2020-2026) FCF plan is on track
Repurchased 1.6 million shares of CNX common stock on the open market at an average price of $13.89 per share for a total cost of $23 million
The remaining amount available under the existing stock repurchase program is $215 million and is not subject to an expiration date
Net debt reduced by approximately $89 million in Q2
2ND QUARTER SNAPSHOT(1)
Free Cash Flow
2021E Free Cash Flow Yield
Q2 2021 Operating Margin
2021E Cash Operating Margin
TTM Leverage Ratio
2021E Leverage Ratio
$1.09 per Mcfe
$1.05 per Mcfe
Fully Burdened Cash Costs,
2021E Fully Burdened Cash
Note: Financial metrics based on company filings and estimates. Share price as of 7/16/2021.
(1) Non-GAAP measures. For definitions and reconciliations, see "2Q 2021 Earnings Results & Supplemental Information of CNX
Resources" on Investor Page on the company's website and page 10 herein.
CNX Net Carbon Negative for Scope 1&2 Emissions Since 2013
CNX is Scope 1 & 2 Net Carbon Negative
Scope 1&2 Emissions
Captured Mine Methane - VA Only
Net CO2e Emission
Consistent reduction in Scope 1 GHG emissions, with 90% reduction since 2013
Coal Mine Methane capture results in ~8 Million MT/Year in CO2e GHG emission reduction per year
Approximately 41 million tons in cumulative negative carbon emissions since 2013
Unique asset portfolio to consistently capture and abate mine methane emissions
Source: Company filings and analysis.
Key 2021 Financial Metrics Lead Across Major Indices
S&P 1500 Index
S&P 1500 Industrials
S&P 400 Mid Cap
S&P 600 Small Cap
Note: Financial metrics based on FactSet consensus estimates for 2021. CNX financial metrics based on company estimates. Operating margin calculated as EBIT divided by total Revenue. CNX leverage ratio assumes
2021 free cash flow allocated to debt reduction. Indices exclude Financial sector companies.
(1) Non-GAAP measures. For definitions and reconciliations, see "2Q 2021 Earnings Results & Supplemental Information of CNX Resources" on Investor Page on the company's website and page 10 herein.
Peer Leading Cost Structure Drives FCF Generation
LOWEST PRODUCTION COSTS IN APPALACHIA…
CNX owns its own midstream system
Did not meaningfully subscribe to expensive FT contracts
Expect fully burdened cash costs to trend down over time
Contracts roll off
Interest expense declines with debt repayment
Production Cash Costs,
…UNDERPIN MEANINGFUL RETURNS
$117MM in FCF(1) in Q2 2021
Generated $574MM of FCF(1) over last 6 quarters
Have bought back $84MM of shares over past 3 quarters
2021E FCF Yield(1)(3)
Source: Company materials, public filings and FactSet as of 7/9/21. Peers include AR, COG, EQT, RRC, and SWN. COG, EQT, and SWN are presented as standalone entities and not pro forma for recent acquisitions.
Non-GAAP measures. For definitions and reconciliations, see "2Q 2021 Earnings Results & Supplemental Information of CNX Resources" on Investor Page on the company's website and page 10 herein.
CNX production cash costs are as of Q2 2021, and peers are as of Q1 2021.
CNX free cash flow (FCF) per company guidance. FCF consensus estimates as of 7/9/2021 and defined as cash flow from operations less capex. COG, EQT and SWN FCF shown as 9-month annualized values (Q1
Q3 2021E) to represent standalone company. Share prices as of 7/16/2021.
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CNX Resources Corporation published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 10:56:04 UTC.