CNX Resources (CNX) Q1 2026 earnings summary

Executive summary

• Achieved 25th consecutive quarter of positive free cash flow, generating $139 million in Q1 2026, and net income rebounded to $348 million, reversing a prior year loss, driven by higher commodity prices and a $226 million unrealized derivative gain.

• Continued development of the Utica program with three new wells brought online in Q1, while Marcellus remains the primary focus due to existing infrastructure and near-term economics.

• Maintains a significant presence in Appalachia with a 162-year legacy, focusing on ultra-low carbon intensive natural gas and holding 9.7 Tcf equivalent of proved reserves as of December 31, 2025.

• Optimism about long-term in-basin demand growth, with participation in RFPs for new gas supply to large-scale power and data center projects.

• Released detailed quarterly results and hosted a Q&A conference call for analysts and investors.

Financial highlights

• Q1 2026 free cash flow of $139 million, net income of $348 million, and total revenue of $787 million, with natural gas, NGL, and oil revenue up 31% to $722 million.

• Q1 2026 cash operating margin at 71%, fully burdened cash costs before DD&A at $0.95 per Mcfe, and operating margin for production at $1.56/Mcfe.

• Trailing twelve-month leverage ratio at 1.8x, projected to improve to 1.5x by year-end 2026.

• Over $3.0 billion in free cash flow generated since Q1 2020.

• Diluted EPS was $2.18, compared to a loss per share of $1.34 in the prior year period.

Outlook and guidance

• 2026 FCF guidance updated to ~$525 million, with FCF per share expected at ~$3.41.

• 2026 capital expenditures projected between $556 million and $586 million, including $16 million for Utica Shale rights, and production volumes expected between 605–620 Bcfe.

• The company remains highly hedged, with 346 Bcf of 2026 production hedged at an average price of $2.74/Mcf.

• No changes to projections for new technology or environmental credit monetization businesses; awaiting final guidance on 45Z but not expecting material impact.

• Anticipates providing more robust Utica well performance data toward the end of 2026 or early 2027.