CNX Resources Corporation · NYSE:CNX
CNX Resources — Q4 2020 Earnings Presentation
10 slides from CNX Resources's earnings presentation, Jan 28, 2021
Slide 1: Q4 2020 Update
Q4 2020 Update January 28, 2021
Slide 2: Q4 2020 Highlights
Q4 2020 Highlights “CNX continued to successfully execute its plan by delivering another quarter of 4TH QUARTER SNAPSHOT(1) positive free cash flow, reducing absolute debt, reducing share count at attractive pricing, and lowering fully burdened cash costs," commented Nick DeIuliis, president $85MM 1
Slide 3: CNX Leads Peers on Key Metrics
CNX Leads Peers on Key Metrics Net Shale Acres(1) Q4/Q3 2020 Production Cash Costs ($/Mcfe)(2)(3) Current Production (MMcfe/d) 2,000 1,819 5,000 Net Shale Acres (in 000’s) 1,800 4,500 $2.03 1,600 4,000 1,400 3,500 1,134 $1.46 1,200 3,000 $1.28 $1.36 1,000 832 786 2,500 800 2,000 $0.77 600 522 1,500
Slide 4: Low Costs Driving Strong Operating Margins
Low Costs Driving Strong Operating Margins Fully Burdened Costs(1) $1.29 $1.20 $1.17 $1.05 $1.01 $0.29 $0.45 $0.27 Fully burdened $0.18 $0.23 costs expected $/Mcfe $0.17 $0.17 $0.18 $0.21 $0.11 to further decline in long-term plan to average $0.74 $0.73 $0.71 $0.66 $0.62 approximately $0.90 per Mcfe
Slide 5: Significant Free Cash Flow Generation
Significant Free Cash Flow Generation Free Cash Flow (FCF)(1) $450 ~$425 $400 $85 $356 Consistently $350 producing significant FCF: $300 $121 $43MM in share buybacks $356 million in $ in millions $250 2020, and expect FCF to grow in $200 future years $21 $150 $129 $100 $50 $43MM in share buybacks $0
Slide 6: Opex is the Biggest Controllable Driver to Well Economics
Opex is the Biggest Controllable Driver to Well Economics Incremental IRR Sensitivities(1) (12k' SWPA Marcellus Well) ▪ Operating expense (Opex) and realized natural gas prices have the largest impact on economics Opex (+/- $0.50/Mcf) (26%) 38% ▪ CNX has obsessively focused on its cost EUR (-/+ 0.50
Slide 7: Balance Sheet and Liquidity Strength
Balance Sheet and Liquidity Strength Closed on $500 million Senior Notes Offering to create further Maturities as of December 31, 2020 (Adjusted)(1) ($ in millions) financial flexibility Net debt reduced by over $300 Undrawn Revolver million in 2020 Capacity $1,923 Significant liquidity under credit
Slide 8: Guidance Update
Guidance Update PREVIOUS UPDATED 2021E 2021E ($ in millions) Low High Low High Total Capital Expenditures ~$440 $430 - $470 Production Volumes (Bcfe) ~550 540 - 570 % of Natural Gas Hedged 89% 90% Prices on Open Volumes(1) Natural Gas NYMEX ($/MMBtu) - $2.78 Natural Gas Basis Differential ($/MMBtu)
Slide 9: Key 2021 Financial Metrics Lead Across Major Indices
Key 2021 Financial Metrics Lead Across Major Indices 15% 30 % 2.0x FCF Yield(1) Operating Margin(1) Leverage Ratio(1) percentile S&P 1500 Index 95th 72nd 59th percentile S&P 1500 Industrials 97th 92nd 72nd percentile S&P 400 Mid Cap 96th 72nd 56th percentile S&P 600 Small Cap 90th 84th 58th Note: Fi
Slide 10: Investor Contacts & Notices
Investor Contacts & Notices 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 national and global economic conditions, Investor Relations Contact generall