CNX Resources : Q1 2026 CNX Resources Earnings Prepared Remarks

About this update from Cnx Resources Corporation

‌April 30, 2026 Ǫ1 2026 Earnings Prepared Remarks Investor Notices ‌This presentation, including the oral statements made in connection herewith, contains forward-looking statements, estimates, and projections within the meaning of the federal securities laws. Statements that are not historical are forward-looking and may include our operational and strategic plans; estimates of gas reserves and resources; projected timing and rates of return of future investments; and projections and estimates of future production revenues, income, and capital spending. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements estimates and projections. Investors should not place undue reliance on forward-looking statements as a prediction of future actual results. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements, and we caution you not to rely on them unduly.‌‌ Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions "Cautionary Statement Regarding Forward-looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (SEC) on February 10, 2026, as supplemented by our quarterly reports on Form 10-Q and any other reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; local, regional and national economic conditions and the impact they may have on our customers; events beyond our control, including a global or domestic health crisis or global instability; our operations and national and global economic conditions, generally; conditions in the oil and gas industry; the financial condition of our customers; any nonperformance by customers of their contractual obligations; changes in customer, employee or supplier relationships; ability to qualify for environmental attribute credits and the volatility of environmental attribute markets; and changes in safety, health, environmental and other regulations. Ǫ1 2026 Earnings Prepared Remarks ‌Overview‌‌ In the first quarter of 2026, CNX generated $139 million in free cash flow (FCF) (1) , marking our 25 th consecutive quarter of FCF generation. Our unmatched track record of FCF generation highlights our high-quality asset base and industry-leading low-cost business structure. Since the inception of our 7-year plan in 2020, our differentiated business model has resulted in cumulative FCF of approximately $3.0 billion. We remain focused on successfully executing our Sustainable Business Model, which we expect will continue to create significant long-term per share value throughout the commodity cycle. ‌(1) Free Cash Flow (FCF): Net cash provided by operating activities minus capital expenditures plus proceeds from asset sales and minus investments in equity affiliates. ‌‌‌‌ Capital Allocation In the first quarter, we repurchased approximately 1.4 million shares for $54 million at an average price of $37.32 per share, a price we believe reflects a discount to our intrinsic value. Following the end of the quarter, we repurchased an additional 0.5 million shares for $19 million at an average price of $38.75 per share. Since our peak share count in the third quarter of 2020, we have repurchased approximately 99 million shares for $1.9 billion at an average price of $19.53 per share. This represents a market leading 37% cumulative reduction in our total shares outstanding inclusive of the effect of share issuances associated with our convertible notes and equity compensation. During the first quarter, we strategically strengthened our balance sheet by taking advantage of favorable market conditions to refinance our 2029 senior notes, replacing them with new 8-year 5.875% senior notes due in 2034. This continual focus on opportunistically extending our unsecured debt maturities is a key tenant in our overall risk management strategy and enables significant capital allocation flexibility. ‌Our advantageous balance sheet position continues to provide us with significant capital allocation flexibility, and our short-term capital allocation decisions will continue to be a fluid evaluation process that enables us to be opportunistic and nimble to respond to changing capital market conditions. Most importantly, our long-term capital allocation strategy remains focused on actions that will increase our long-term per share value. Operational Update ‌The team continued to safely and efficiently execute during the first quarter as we drilled 14 SWPA Marcellus wells, frac'd 6 wells (3 SWPA Marcellus and 3 CPA Utica wells), and turned-in-line (TIL'ed) 12 wells (6 SWPA Marcellus, 3 CPA Marcellus, and 3 CPA Utica wells). Included in that activity set, were three of our longest Marcellus laterals to date, all of which exceeded 22,000 feet, including a company record lateral that reached 23,369 feet, and a company daily drilling record of 9,252-feet of lateral in 24 hours.‌‌‌‌ Given current commodity market conditions, we continue to expect that we will execute a maintenance of production program consisting of approximately 1.5 rigs and a partial year frac crew as initially planned. Our development program is a combination of harvesting our Marcellus inventory and further enhancing our leadership and expertise in the deep Utica. We continue to expect 2026 capital expenditures to be weighted towards the first half of the year and total volumes to be generally consistent from quarter to quarter. Lastly, we will continue to be responsive to any material changes in gas prices that may indicate an adjustment is needed to our planned activity set as we seek to optimize long-term value per share. Low Carbon Intensity Premium Products We recognized net sales of environmental attributes of approximately $12 million during the first quarter associated with approximately 4.2 Bcf of Remediated Mine Gas (RMG), on track with our full year expectation to capture approximately 17 Bcf of RMG that should result in approximately $50 million of Pennsylvania Tier 1 AEC net sales at current market prices. Additionally, subject to final IRS guidance, we continue to expect to generate approximately $20 million of cash proceeds in 2026 from the sale of 45Z tax credits associated with approximately 8 months of qualifying remediation activities in 2025. We expect the final rule regarding implementation of the Section 45Z Clean Fuel Production Credit to be promulgated by the US Treasury Department in the second half of 2026. Guidance ‌We continue to expect total 2026 annual production volumes to be between 605 and 620 Bcfe and to turn-in-line 34 wells consisting of 27 Marcellus wells and 7 deep Utica wells.‌‌‌ Total 2026 base program capital expenditures are reaffirmed to be between $540 million and $570 million. Additionally for 2026, total capital expenditures includes the first of three annual payments of $16 million associated with the acquisition of the Utica rights beneath the legacy Apex Energy footprint that was entered into in Q3 2025. Assuming April 15 th NYMEX pricing of $3.64 per MMBtu, we expect to generate full year FCF of approximately $525 million, or $3.41 per share using our current shares outstanding plus the additional 12.4 million net shares expected to be issued to settle the remaining convertible notes. The modest decline in expected 2026 FCF is due to NYMEX pricing declining by $0.43 per MMBtu since our last update in January, offset in part by a $15 million increase in expected asset sales for the year. ‌Tangible, Impactful, Local ESG‌‌‌‌‌ CNX recently announced its 2025 sustainability accomplishments, marking the first full year since the company shifted from a static annual Corporate Sustainability Report to quarterly ESG Performance Scorecard updates and continuously updated website disclosures. These continuous disclosures provide shareholders, communities, and employees with a clearer, more current view of how we are performing, improving, and adding value for all stakeholders. Throughout the year, CNX acted on its micro-TIL philanthropic approach to help provide support more quickly and more directly to families, individuals, and organizations in its local communities with CNX Foundation giving $4 million of support. CNX continued to support workforce pathways across Appalachia through the CNX Mentorship Academy and the Energy Short Service Employee (SSE) internship program. The 2024-2025 Mentorship Academy cohort included 73 graduating seniors, with more than 30% obtaining full-time employment and 51% planning to pursue continued education. Eleven energy industry companies and eight interns participated in the 2025 Energy SSE internship, with 75% of interns obtaining full-time employment at program end. CNX's Radical Transparency philosophy of environmental stewardship backed by data continued to advance its environmental record in 2025 through disciplined operations, emissions-management efforts, and technology-enabled monitoring across its operating footprint. CNX expanded its Radical Transparency efforts in 2025. Since inception, over a million data points have been collected, simultaneously reported to the Pennsylvania Department of Environmental Protection (PADEP), and transparently posted on CNX's website, with monitoring coverage including active and archived sites. Throughout this program, we have found no evidence of impacts from our gas development operations that would be harmful to human health or degrade local air quality, calling into question the need for expanded buffer zones in the Commonwealth of Pennsylvania, as some have proposed. We continue to call on others in our industry to join our efforts, for the scientific community to engage with the data, and for policy makers to base future regulations on actual measured data. ‌Summary‌ To conclude, the first quarter once again highlighted the strength of our Sustainable Business Model that continues to deliver value to our shareholders throughout the commodity cycle. Our focus remains on safe and compliant execution to develop our extensive natural gas asset base, clinical capital allocation to grow our long-term FCF per share, and most importantly, as always, on ensuring all our decisions continue to reflect a long-term owner mindset.

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