CNX · CNX Resources Corporation

CNX Resources’ Q1 2026 results reflect a sharp rebound in profitability, with GAAP net income surging to $348 million—up $152 million sequentially and reversing a $198 million loss from Q1 2025. This swing was heavily influenced by commodity derivative activity: an unrealized gain of $226 million in Q1 2026 contrasted with a $456 million unrealized loss in Q2 2025 and a $418 million loss in Q1 2025. While the company’s core operational metric—Adjusted EBITDAX—rose to $400 million (up $108 million YoY), it declined $108 million quarter-over-quarter, suggesting margin pressure despite higher revenue. Production volumes fell across all categories: shale sales dropped to 129.8 Bcf (from 130.5 Bcf in Q4 2025 and 139.2 Bcf in Q3 2025), and total Mcfe production slipped to 152.4 Bcfe, below both prior quarters and the same quarter last year. The balance sheet shows elevated leverage, with net debt at $2.36 billion and only $4 million in cash and equivalents as of March 31, 2026—underscoring limited near-term financial flexibility. Operating cash flow remained robust at $278 million, but capital expenditures consumed $170 million, resulting in modest free cash flow generation. Management’s continued reliance on hedging to stabilize revenue—evidenced by 115.1 Bcf hedged for Q2 2026 at an average NYMEX+ basis price of $2.71/Mcf—highlights exposure to forward curve volatility and basis risk, particularly in Eastern Gas-South and TETCO M2 positions. No updated full-year guidance is disclosed in the filing or Exhibit 99.1, limiting forward visibility beyond the current hedge book.