CNX Q3 Net Income Falls to $165.2 Million as 2026 FCF Guidance Rises

CNX Resources Corporation (CNX ) reported third-quarter 2026 net income of $165.2 million, or $1.12 per diluted share, on October 29, 2026, and raised its full-year 2026 free cash flow guidance to approximately $550 million from approximately $525 million, according to the earnings results and supplemental information the company posted to its investor relations website.

The Canonsburg, Pennsylvania-based natural gas producer released the results by posting prepared remarks, supplemental information and a presentation to its investor relations site, and filed the supplemental document as Exhibit 99.1 to a Form 8-K with the U.S. Securities and Exchange Commission the same day under Item 2.02 (Results of Operations and Financial Condition), Item 7.01 (Regulation FD Disclosure) and Item 9.01 (Financial Statements and Exhibits).

Total revenue and other operating income was $580.0 million for the third quarter of 2026, compared with $583.8 million in the same period of 2025. Natural gas, NGL and oil revenue was $372.5 million, against $401.0 million a year earlier. The quarter included a $160.6 million gain on commodity derivative instruments, compared with a $131.7 million gain in the prior-year quarter; the supplemental information’s derivatives table shows a $53 million realized gain and a $108 million unrealized gain for the third quarter of 2026. Net income of $165.2 million, or $1.13 per basic share and $1.12 per diluted share, compared with net income of $202.1 million, or $1.21 per diluted share, in the third quarter of 2025.

CNX reported free cash flow of $125 million for the quarter. Free cash flow is a non-GAAP measure the company defines as net cash provided by operating activities minus capital expenditures plus proceeds from asset sales and minus investments in equity affiliates; the supplemental reconciliation shows third-quarter operating cash flow of $253 million, capital expenditures of $139 million, proceeds from asset sales of $16 million and investments in equity affiliates of $5 million. The company said the quarter marked its 27th consecutive quarter of free cash flow generation and that cumulative free cash flow since the inception of its seven-year plan in 2020 has reached approximately $3.3 billion.

“Q3 2026 marks our 27th consecutive quarter of free cash flow generation, highlighting our Sustainable Business Model and consistent execution that is the cornerstone of growing our long-term per share value,” President and CEO Alan Shepard said in the company’s prepared remarks.

Adjusted EBITDAX, another non-GAAP measure, was $294 million for the quarter, compared with $298 million in the third quarter of 2025, and adjusted net income was $90 million, compared with $82 million, according to the company’s reconciliations.

CNX repurchased approximately 5.2 million shares for $180 million at an average price of $34.35 per share during the third quarter and, following the end of the quarter, repurchased an additional 1.1 million shares for $37 million at an average of $32.85 per share, according to the prepared remarks. Since its peak share count in the third quarter of 2020, the company has repurchased approximately 111 million shares for $2.3 billion at an average price of $21.08 per share, a cumulative reduction in shares outstanding that CNX put at 36%. Shares outstanding stood at 142,861,133 as of October 14, 2026.

Net debt increased by $60 million during the quarter as the company utilized its capital allocation flexibility to repurchase shares, and it is down approximately $133 million since the beginning of 2026, CNX said. Net debt stood at $2,275 million at September 30, 2026, with total long-term debt, including the current portion, of $2,279 million.

CNX recognized approximately $15 million of net environmental attribute sales during the third quarter associated with approximately 4.5 Bcf of Remediated Mine Gas, consistent with its full-year expectation of capturing approximately 17 Bcf of Remediated Mine Gas for approximately $50 million of Pennsylvania Tier 1 AEC net sales at current market prices, according to the prepared remarks. Also during the quarter, the company monetized 45Z tax credits through a sale to a third party, generating approximately $30 million of net cash proceeds, and CNX said it anticipates total annual 45Z tax credit sales increasing to approximately $40 million beginning in 2027. The company expects the U.S. Treasury Department to promulgate the final rule on implementation of the Section 45Z Clean Fuel Production Credit by year end or shortly thereafter.

The company also announced during the quarter an expansion of Radical Transparency, its public-private environmental monitoring and disclosure collaboration with Governor Josh Shapiro and the Pennsylvania Department of Environmental Protection. CNX voluntarily committed to install continuous ambient gamma radiation monitoring at or near its unconventional well pads and certain produced water facilities, covering all phases of development from drilling through production, with an independent third party collecting the raw data and providing it to CNX and the DEP simultaneously. The company will also publicly disclose waste transportation radiation survey data, updated monthly, consistent with its Comprehensive Radiation Protection Plan.

Production, Pricing and Hedging

Third-quarter production totaled 156.3 Bcfe, compared with 161.3 Bcfe in the third quarter of 2025, and average daily production was 1,699.2 MMcfe, compared with 1,753.3 MMcfe a year earlier. Shale sales volumes were 132.8 Bcf, CBM sales volumes were 9.4 Bcf and NGL sales volumes were 13.8 Bcfe.

The average sales price for natural gas was $2.22 per Mcfe, with cash settlements on natural gas commodity derivative instruments adding $0.37 per Mcfe. Total natural gas, NGL and oil production costs were $1.63 per Mcfe, and the production cash margin before depreciation, depletion and amortization was $1.91 per Mcfe. The company’s realized natural gas price was $2.58 per Mcf against an average NYMEX natural gas price of $2.95 per MMBtu.

During the quarter, CNX drilled two CPA Utica wells, fractured 12 SWPA Marcellus wells and turned in line 12 SWPA Marcellus wells with an average lateral length of 12,600 feet, operating approximately 1.5 rigs and a partial-year frac crew, with one rig at period end.

Hedge positions as of October 14, 2026 covered total volumes of 461.2 Bcf for 2026, 409.4 Bcf for 2027, 233.1 Bcf for 2028 and 38.2 Bcf for 2029. NYMEX hedges carried average prices of $3.53 per Mcf for 2026 and $4.16 per Mcf for 2027.

Updated 2026 Guidance

CNX raised the midpoint of its 2026 production guidance to a range of 612.5 to 617.5 Bcfe, from previous guidance of 605.0 to 620.0 Bcfe, and expects to turn in line 34 wells consisting of 27 Marcellus wells and seven deep Utica wells. The midpoint of the 2026 base capital program increased to $563 million from $555 million, within an updated range of $555 million to $570 million. Total 2026 capital expenditures are guided at $571 million to $586 million, including the first of three annual $16 million payments associated with the acquisition of Utica rights beneath the legacy Apex Energy footprint, an agreement entered into in the third quarter of 2025 and paid in the first quarter of 2026.

Assuming October 14 NYMEX pricing of $3.54 per MMBtu, the company now expects full-year 2026 free cash flow of approximately $550 million, up from previous guidance of approximately $525 million, and it raised its 2026 free-cash-flow-per-share outlook to $3.85 from $3.55, attributing the increase to the raised guidance and third-quarter repurchase activity; the updated per-share outlook is based on the reduced October 14 share count. The free cash flow guidance includes approximately $50 million in expected 2026 asset sales and approximately $30 million from the sale of 45Z tax credits.

Other changes to 2026 guidance: adjusted EBITDAX narrowed to a range of $1,290 million to $1,310 million, from $1,265 million to $1,315 million; the percentage of natural gas hedged moved to 82% from 81%; the assumed natural gas differential moved to ($0.71) per MMBtu from ($0.59); and the assumed NGL realized price moved to approximately $26.95 per barrel from approximately $24.60.

As previously disclosed, the company’s Q&A conference call and webcast was scheduled for 10:00 a.m. Eastern Time on October 29, 2026, and CNX said a replay of the call and webcast would be maintained on the investor relations page of its website.