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OFFON

CNX RESOURCES CORPORATION

(CNX)
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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)

$117MM17%

Free Cash Flow

2021E Free Cash Flow Yield

30%62%

Q2 2021 Operating Margin

2021E Cash Operating Margin

2.4x2.0x

TTM Leverage Ratio

2021E Leverage Ratio

$1.09 per Mcfe

$1.05 per Mcfe

Fully Burdened Cash Costs,

2021E Fully Burdened Cash

before DD&A

Costs

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

2

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

2,000,000

1,000,000

CO2e

-

(1,000,000)

of

Tons

(2,000,000)

Metric

(3,000,000)

(4,000,000)

(5,000,000)

(6,000,000)

(7,000,000)

(8,000,000)

2018

2019

2020

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.

3

Key 2021 Financial Metrics Lead Across Major Indices

17%

32%

2.0x

FCF Yield(1)

Operating Margin(1)

Leverage Ratio(1)

S&P 1500 Index

96th

74th

61st

percentile

97th

94th

percentile

S&P 1500 Industrials

70th

97th

76th

percentile

S&P 400 Mid Cap

60th

91st

84th

percentile

S&P 600 Small Cap

61st

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.

4

(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,

before DD&A(1)(2)

$2.26

($/Mcfe)

$1.57

$1.39

$1.20

$0.73

$0.77

…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)

20%

17%

13%

8%8%

6%

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.

(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.

(2)

CNX production cash costs are as of Q2 2021, and peers are as of Q1 2021.

5

(3)

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.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

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.


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Financials (USD)
Sales 2021 1 202 M - -
Net income 2021 -130 M - -
Net Debt 2021 1 985 M - -
P/E ratio 2021 -22,9x
Yield 2021 -
Capitalization 2 571 M 2 571 M -
EV / Sales 2021 3,79x
EV / Sales 2022 2,58x
Nbr of Employees 451
Free-Float 97,6%
Chart CNX RESOURCES CORPORATION
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CNX Resources Corporation Technical Analysis Chart | CNX | US12653C1080 | MarketScreener
Technical analysis trends CNX RESOURCES CORPORATION
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TrendsBullishBearishNeutral
Income Statement Evolution
Consensus
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Mean consensus OUTPERFORM
Number of Analysts 12
Last Close Price 11,80 $
Average target price 17,09 $
Spread / Average Target 44,8%
EPS Revisions
Managers and Directors
Nicholas J. DeIuliis President, Chief Executive Officer & Director
Donald W. Rush Chief Financial Officer & Executive VP
William Nicholas Thorndike Chairman
Chad A Griffith Chief Operating Officer & Executive Vice President
Maureen E. Lally-Green Independent Director
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