CNX Resources Issues $400M in Debt

CNX Resources Corporation, a leading natural gas development and production company, has announced its intention to offer and sell $400 million of senior notes due 2032 in a private placement to eligible purchasers. The company also plans to guarantee the notes with all of its restricted subsidiaries that guarantee its revolving credit facility. In addition to the offering, CNX has commenced a tender offer to purchase for cash any and all of its 7.250% senior notes due 2027 and issued a conditional notice to redeem all 2027 notes not purchased in the tender offer.

The net proceeds from the sale of the notes will be used by CNX to purchase any and all of its outstanding 2027 notes pursuant to the tender offer, fund the redemption, and repay borrowings under its revolving credit facility, with any remaining proceeds allocated for general corporate purposes.

Nicholas J. DeIuliis, President and Chief Executive Officer of CNX Resources Corporation, expressed confidence in the company's strategic use of the proceeds, stating, "We intend to utilize the net proceeds to effectively manage our outstanding debt and to support our ongoing operations and growth initiatives."

CNX Resources Corporation, which had 8.74 trillion cubic feet equivalent of proved natural gas reserves as of December 31, 2023, emphasized its commitment to responsible resource development and value creation for its stakeholders. DeIuliis highlighted the company's focus on deploying free cash flow to create long-term per share value for shareholders, employees, and the communities where it operates.

"We are committed to leveraging our substantial asset base, operational competencies, and astute capital allocation methodologies to advance our position as a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company," DeIuliis added.

In the financial markets, CNX Resources Corporation's shares have experienced a 2.4% movement, reaching a trading price of $20.22.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $1,730 $1,922 $1,258 $757 $1,261 $4,103
Revenue Growth n/a 11.1% -34.56% -39.84% 66.65% 225.32%
Net Margins 46% -4% -38% -66% -11% 57%
Net Income (MM) $797 -$81 -$484 -$499 -$142 $2,381
Net Interest Expense (MM) $146 $151 $171 $151 $128 $141
Depreciation & Amort. (MM) $493 $508 $502 $515 $461 $433
Earnings Per Share $3.71 -$0.42 -$2.43 -$2.31 -$0.75 $12.2
EPS Growth n/a -111.32% -478.57% 4.94% 67.53% 1726.67%
Diluted Shares (MM) 215 191 199 216 190 191
Free Cash Flow (MM) -$231 -$212 $308 $460 $669 $351
Capital Expenditures (MM) $1,116 $1,193 $487 $466 $566 $745
Current Ratio 0.96 0.94 0.62 0.48 0.44 0.3
Total Debt (MM) $2,399 $2,754 $2,447 $2,214 $2,206 $2,169

CNX Resources has exceptional EPS growth and generally positive cash flows. Additionally, the company's financial statements display healthy debt levels and rapidly growing revenues and decreasing reinvestment in the business. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.3. Finally, we note that CNX Resources has weak net margins with a stable trend.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.