Company Overview
CNX Resources Corporation functions as an independent natural gas and midstream entity focused on the acquisition, exploration, development, and production of natural gas properties located within the Appalachian Basin. The corporation operates through two primary business segments, specifically targeting shale and coalbed methane (CBM) assets, while engaging in the production and sale of pipeline natural gas. This operational model places the company squarely within the Energy sector, specifically the Oil & Gas E&P industry, where it leverages geological resources to generate commodity revenue. The organization employs a workforce of 390 individuals to support its extensive exploration and production activities across the specified regions. With a total market capitalization of $5.78 billion and annual revenue reaching $2.07 billion, CNX Resources represents a significant mid-to-large-cap player in the sector. These financial figures indicate that the company holds a substantial position in the market, possessing the capitalization required to fund major upstream projects and maintain operations at a scale that rivals other established energy producers in the Appalachian Basin.
Financial Health
The company reported revenue of $2.07 billion over the trailing twelve-month period, generating net income of $633.16 million and an EBITDA of $1.46 billion. The substantial gap between the total revenue of $2.07 billion and the net income of $633.16 million reveals a cost structure where approximately 69.3% of revenue is consumed by operating expenses, taxes, and other deductions before reaching the bottom line. Despite these costs, the company maintains robust profitability with a free cash flow of $549.84 million, which provides significant financial flexibility for capital allocation decisions, debt repayment, or potential strategic acquisitions. Profitability is further evidenced by three key margin metrics: a gross margin of 73.1%, an operating margin of 57.9%, and a profit margin of 30.7%, each indicating efficient conversion of sales into profit at different stages of the value chain. Regarding liquidity and leverage, the company holds cash of $779,000 against total debt of $2.60 billion, resulting in a debt-to-equity ratio of 60.06, which characterizes the balance sheet as highly leveraged relative to its equity base. Short-term liquidity is constrained by a current ratio of 0.44, indicating that current liabilities exceed current assets, a common characteristic in capital-intensive upstream energy companies reliant on long-term production cycles. Management effectiveness is demonstrated by a return on equity of 15.0% and a return on assets of 6.3%, metrics that suggest the company generates solid returns on shareholder capital and utilizes its asset base efficiently to produce earnings.
Valuation Assessment
The stock trades at a trailing P/E ratio of 10.20 and a forward P/E of 9.92, suggesting that the market anticipates earnings growth that will narrow the gap between current valuation and future expectations. The price-to-book ratio stands at 1.34, indicating that the market values the company at a modest premium of 34% above its book value, reflecting confidence in the quality of its reserves and future cash flows. Alternative valuation metrics provide further context, with a price-to-sales ratio of 2.80 and an EV/EBITDA of 5.73, which suggests the company is priced attractively relative to its cash generation capabilities and sales volume compared to historical averages in the sector. In terms of recent price action, the 52-week high is recorded at $43.62 and the 52-week low at $27.68, meaning the current share price sits below the peak but remains well above the trough. The beta of 0.62 indicates that the stock exhibits lower price volatility relative to the broader market, moving with roughly 38% less sensitivity than the market index.
Growth & Income
Revenue growth for the trailing twelve months was 41.2% year-over-year, while earnings growth is listed as N/A, meaning earnings growth is not currently quantified in the provided data to compare directly with revenue expansion. Because earnings growth data is unavailable for direct comparison, the specific implication regarding whether earnings are growing faster or slower than revenue cannot be definitively determined from the current figures alone. As a non-dividend payer, the company does not distribute a dividend yield, and the payout ratio is 0.0%, indicating that all net income is retained within the business to fund operations, reduce debt, or invest in new exploration and development projects rather than being paid out to shareholders. Consequently, the overall growth and income profile is characterized by a focus on capital reinvestment and organic expansion within the shale and CBM segments rather than providing current income through dividends.