Cnx Resources Corporation · NYSE:CNX
Cnx Resources — Q3 2020 Earnings Presentation
11 slides from Cnx Resources's earnings presentation, Oct 29, 2020
Slide 1: Q3 2020 Update
Q3 2020 Update October 29, 2020
Slide 2: CNX Leads Peers on Key Financial and Inventory Metrics
CNX Leads Peers on Key Financial and Inventory Metrics Enverus Third-Party Reported Inventory Life Under $2.50/MMBtu Q3/Q2 2020 Operating Expenses ($/Mcfe)(1) (Years) 22 $2.11 19 $1.44 $1.28 11 10 10 $1.01 $0.73 $0.77 3 CNX RRC COG SWN EQT AR CNX COG SWN EQT RRC AR 2022E FCF Yield (Strip)(1)(2) YE 2
Slide 3: Enverus Third-Party Reported Inventory Life By Breakeven
Enverus Third-Party Reported Inventory Life By Breakeven Inventory Life by Breakeven 50 45 Inventory Life at 2023 Activity Level (Years) CNX has the 40 deepest and 35 longest-lived 30 inventory under a 25 $2.50 gas price, more than double 20 the peer average 15 10 5 - CNX RRC TOU CRK COG SWN EQT SBO
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights QUARTER SUMMARY: 3RD QUARTER SNAPSHOT(1) “CNX continued to successfully execute its plan in the third quarter highlighted by $121MM 18% significant positive free cash flow, reduced absolute debt, and lower fully burdened Free Cash Flow 2021E Free Cash Flow Yield cash costs," comme
Slide 5: Significant Free Cash Flow Generation
Significant Free Cash Flow Generation $600 Free Cash Flow (FCF)(1) ~$515 $500 Currently ~ $425 producing $400 ~ $79 ~ $350 significant FCF: $ in millions $271 million YTD, $300 $121 $271 $79 and expect FCF to grow in future $200 years $21 $129 $271 $100 $0 1Q20 2Q20 3Q20 YTD 2020 Implied Q4 2020E 20
Slide 6: Free Cash Flow Improvements
Free Cash Flow Improvements Steadily increased 2020E 2020E & 2021E Annual Free Cash Flow(1) Guidance Evolution and 2021E $900 annual FCF $800 guidance over $700 past 5 quarters $600 $425 $425 $ in millions $500 $400 $425 $400 Expect to $250 $300 $79 continue to $200 $200 $171 $150 reduce risks and $
Slide 7: Low Costs Driving Strong Operating Margins
Low Costs Driving Strong Operating Margins 2020E-2026E Fully Burdened Costs(1) $1.29 $1.20 $1.17 $1.04 $1.02 $0.29 $0.45 $0.27 0.91 $0.23 $0.20 $0.07 $/Mcfe $0.17 $0.17 $0.18 $0.11 $0.11 $0.14 $0.74 $0.73 $0.67 $0.71 $0.73 $0.66 1Q20 2Q20 3Q20 4Q20E 2021E 2022-2026E Average Operating Margins(1) 36%
Slide 8: Balance Sheet and Liquidity Strength
Balance Sheet and Liquidity Strength Maturities as of September 30, 2020 (Adjusted)(1) ($ in millions) In 2020, paid off all of the $895 million of Senior Notes due in 2022 Undrawn Revolver Capacity Significant runway before nearest $1,525 notes maturity in 2026 Significant liquidity under credit $4
Slide 9: Guidance and Hedging Update
Guidance and Hedging Update PREVIOUS UPDATED PREVIOUS UPDATED In Q3 2020, CNX added the ($ in millions) 2020E 2020E 2021E 2021E Capital Expenditures Low High Low High following hedges: Drilling & Completions (D&C) $330 - $380 $365 - $375 - - Non-D&C $140 - $170 $130 - $140 - - 98.8 Bcf NYMEX hedges
Slide 10: Key 2021 Financial Metrics Lead across Major Indices
Key 2021 Financial Metrics Lead across Major Indices 18% 30% 2.0x FCF Yield(1) Operating Margin(1) Leverage Ratio(1) percentile S&P 1500 Index 93rd 88th 41st percentile S&P 1500 Industrials 96th 97th 27th percentile S&P 400 Mid Cap 95th 90th 43rd percentile S&P 600 Small Cap 87th 94th 41st Note: Fin
Slide 11: Investor Contacts & Notices
Investor Contacts & Notices CNXM not already owned by CNX; local, regional and national economic conditions and the impact they may have on our customers; the impact of outbreaks of communicable diseases such as COVID-19 on business activity, our operations and Investor Relations Contact national an