CNX Resources Corporation
CNX Resources Corporation Q2 FY2025 earnings call
July 24, 2025 · fiscal period ended 2025-06
EPS · actual vs est
Revenue · actual vs est
Summary
Generated 2025-07-24
Management highlights
• 45Z tax credit: First-year eligibility in 2025, with potential to claim credits in 2026, and program extended through 2029. • Activity levels: No changes expected in current activity; capital efficiency around $0.85 per million in production over CapEx. • Utica: Team has optimized drilling and completion, performance within expectations, with latest TILs slightly above expectation; aggressive to improve performance and reduce costs. • Production: Production outperformance due to new TIL performance, operational execution, production efficiency gains on base production, and uptime on base production. • AI and Energy Summit: Excited about RMG product as sustainable energy solution for data centers, with discussions ongoing with counterparties.
Guidance
• CapEx: No changes expected currently, with capital efficiency around mid-80s range. • 45Z tax credit: Eligibility in 2025, cash from tax returns in 2025 and 2026; volumes may blend Tier 1 REC and 45Z. • Environmental attribute free cash flow: Based on PA Tier 1 strip in mid-20s per megawatt hour.
Q&A highlights
Q: Details on 45Z tax credit timing and ability to claim; plans to grow E&P volumes?
A: 2025 is first eligibility year, cash from tax returns in 2025/2026; no changes expected in E&P activity currently.
Q: Color on drilling and completion activity levels in second half; CapEx trends?
A: Bulk of TILs in front half, next batch in Q4, production sequential decline, CapEx lighter in Q3 then pick up in Q4.
Q: Color on Utica drilling and completion; cost competitiveness vs Marcellus; consistency of Utica performance?
A: Utica performance within expectations, costs competitive now, long runway for repeatable results.
Q: Follow-on on 45Z; credit price underwriting free cash flow guide; RMG input vs output?
A: Credit price mid-20s per MWh; tax credit for incentivizing RMG collection; RMG as remediating emission source.
Q: AI and Energy Summit; RMG in conversations; economics of RMG deals?
A: Excited about RMG as sustainable solution for data centers, discussions ongoing, potential for additional volumes.
Q: Second quarter production surprise; causes?
A: New TIL performance, operational execution, production efficiency gains on base, and uptime on base production.
Key numbers
Reported versus consensus
Earnings calendar feed
| Metric | Reported | Consensus | Delta | Prior year |
|---|---|---|---|---|
| EPS | $0.59 | $0.39 | +51.3% | $0.36 |
| Revenue | $962.4M | $408.8M | +135.4% | $307.3M |
Transcript
July 24, 2025Full transcript unavailable for redistribution
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