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CNX Q3 Earnings Miss Estimates on Lower Gas Prices, Output Decline

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Key Takeaways

  • CNX's Q3 earnings of 61 cents per share miss estimates by 6.2%, while revenues fall 7.1% to $373 million.
  • Natural gas prices decline 8.6% and production drops 3.1%, while production costs fall 4.7% year over year.
  • CNX's free cash flow falls 44.7% to $125 million, marking 27 consecutive quarters of positive cash flow.

CNX Resources Corporation (CNX - Free Report) reported third-quarter 2026 operating earnings of 61 cents per share, missing the Zacks Consensus Estimate of 65 cents by 6.2%. Lower natural gas prices and production volumes weighed on quarterly performance despite improved cost efficiency and continued free cash flow generation.

CNX’s Revenues

CNX reported revenues of $373 million, missing the Zacks Consensus Estimate of $400 million by 6.8%. Revenues declined 7.1% from $401 million in the year-ago quarter.

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. price-consensus-eps-surprise-chart | CNX Resources Corporation. Quote

CNX’s Production, Pricing and Profitability Metrics

The average natural gas sales price declined 8.6% year over year to $2.22 per thousand cubic feet equivalent (Mcfe) from $2.43. Including cash settlements, the average realized price for natural gas, NGLs and oil increased 3.8% to $2.72 per Mcfe from $2.62. Total natural gas, NGL and oil production costs declined 4.7% year over year to $1.63 per Mcfe from $1.71.

Total production volumes were 156.3 Bcfe, down 3.1% from 161.3 billion cubic feet equivalent (Bcfe) in the year-ago quarter. Average daily production declined 3.1% year over year to 1,699.2 million cubic feet equivalent (MMcfe) from 1,753.3 MMcfe.

Shale gas sales volumes declined 4.6% year over year to 132.8 billion cubic feet (Bcf), while natural gas liquids (NGLs) sales volumes increased 15% to 13.8 Bcfe.

Adjusted EBITDAX declined 1.3% year over year to $294 million from $298 million. Adjusted net income increased 9.8% year over year to $90 million from $82 million.

Interest expenses totaled $39.59 million, down 7.9% from $42.96 million in the prior-year period.

CNX’s Financial Position, Cash Flow and Share Buybacks

As of Sept. 30, 2026, CNX had cash and cash equivalents of $1.98 million compared with $0.78 million as of Dec. 31, 2025. 

As of Sept. 30, 2026, long-term debt increased 3% to $2.28 billion from $2.21 billion as of Dec. 31, 2025.

In the third quarter of 2026, net cash provided by operating activities increased 8.5% year over year to $253.53 million from $233.76 million in the year-ago quarter.

In the third quarter of 2026, capital expenditures increased 84.2% year over year to $139.15 million from $75.54 million in the year-ago quarter.

In the third quarter of 2026, free cash flow declined 44.7% year over year to $125 million from $226 million in the year-ago quarter, marking the company's 27th consecutive quarter of positive free cash flow generation.

During the third quarter, CNX repurchased approximately 5.2 million shares at an average price of $34.35 per share for a total cost of $180 million. Following the quarter, it repurchased an additional 1.1 million shares for $37 million.

CNX’s 2026 Guidance

Management expects 2026 production volumes to be in the range of 612.5-617.5 Bcfe.

Adjusted EBITDAX is projected to be in the range of $1.29-$1.31 billion in 2026.

Total capital expenditures are projected to be in the range of $571-$586 million, while free cash flow is expected to be approximately $550 million in 2026.

CNX’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Murphy Oil Corporation (MUR - Free Report) is slated to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, which indicates a year-over-year increase of 119.51%. 

MUR's dividend yield is 3.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $762.06 million, which implies a year-over-year improvement of 3.97%.

Devon Energy (DVN - Free Report) is slated to report third-quarter results for 2026 on Nov. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.24 per share, which indicates year-over-year growth of 19.23%. 

DVN's dividend yield is 2.50%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $7.33 billion, which implies a year-over-year improvement of 69.20%.

EOG Resources (EOG - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $4.45 per share, which indicates a year-over-year increase of 64.21%. 

EOG's dividend yield is 2.54%. The Zacks Consensus Estimate for third-quarter 2026 sales is pegged at $7.54 billion, which implies a year-over-year improvement of 28.91%.

 

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