Stock of the Day

February 2, 2023

CNX Resources (CNX)

$32.67
-$0.62 (-1.8%)
Market Cap: $4.71B

About CNX Resources

CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

Today's Trend

CNX Resources Corporation (CNX) — The stock is trading lower after investors weighed a mix of strong Q1 results against near-term negatives: roughly ~12 million shares from a convertible are converting (dilution), CNX pushed a fuller Utica readout into late‑2026/early‑2027 (delaying insight into growth), and U.S. regional gas supply remains ample versus global demand. Below are the key items investors are reacting to.

  • Q1 results beat expectations — CNX reported stronger-than-expected earnings and rising production/pricing, with revenue and EPS topping estimates, supporting core cash flow and the company’s operational story. CNX Resources Q1 Earnings Surpass Estimates
  • Analyst/deep-dive coverage highlights demand and infrastructure tailwinds that supported CNX’s quarter and longer-term thesis, helping justify bullish forecasts from some houses. CNX Q1 deep dive
  • Company filed its formal Q1 release and call materials (slides/transcript available) — useful for modeling but largely reiterates the beats and guidance commentary. CNX Reports First Quarter Results
  • Convertible converts into roughly ~12 million shares this week — immediate dilution increases share count and is a primary reason for downward pressure. Convertible converts into ~12 million shares
  • CNX delayed a fuller Utica update to late‑2026/early‑2027 — postpones clarity on resource upside and growth timing, increasing short-term uncertainty. Granite lifts 2026 outlook as CNX delays Utica update
  • Macro headwind: a Reuters piece notes a U.S. regional gas glut while Asia/Europe compete for LNG — excess domestic supply can depress realized prices for U.S. producers. While Asia and Europe scramble for natural gas, the US glut has nowhere to go
  • Zacks downgraded CNX from "strong-buy" to "hold," signaling reduced analyst enthusiasm that can weigh on short-term flows. Zacks downgrade
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