Earnings

CNX Narrows 2026 EBITDAX Range After Volume Rebound

The Tip Desk · October 31, 2026 · 3 min read

The company lifted 2026 free cash flow guidance to about $550 million after third-quarter sales volumes reached 156.3 Bcfe.

CNX Resources (CNX), the Appalachian natural gas producer, raised its 2026 free cash flow outlook to about $550 million from about $525 million after third-quarter sales volumes rebounded to 156.3 billion cubic feet equivalent.

The company also lifted free cash flow per share to about $3.85 from about $3.55, using 142,861,133 shares outstanding as of Oct. 14, 2026, versus 147,943,637 shares in the prior outlook.

Total sales volumes rose from 151.5 Bcfe in the second quarter, reversing the 152.4 Bcfe level of the first quarter. Shale sales were 132.8 billion cubic feet. Average daily production increased to 1,699.2 million cubic feet equivalent. NGL sales volumes fell to 13.8 Bcfe from 14.8 Bcfe, and oil and condensate sales were 0.2 Bcfe.

Total revenue and other operating income declined to $580.0 million from $618.5 million. Natural gas, NGL and oil revenue fell to $372.5 million. The gain on commodity derivative instruments decreased to $160.6 million from $176.3 million. Net income declined to $165.2 million, or $1.12 a share, from $202.9 million, or $1.32 a share.

Sales of natural gas, NGL and oil including cash settlements fell to $425 million from $435 million. The average sales price of natural gas, NGL and oil including cash settlements fell to $2.72 a Mcfe from $2.87. Average natural gas sales price declined to $2.22 a Mcfe from $2.40. Realized natural gas price per Mcf fell to $2.58 from $2.73. The average differential widened to $0.85 a MMBtu from $0.62.

Adjusted EBITDAX rose to $294 million from $290 million. Adjusted net income declined to $90 million from $110 million. Operating margin expanded to 32% from 30%. Cash operating margin expanded to 62% from 59%.

Total natural gas, NGL and oil production costs declined to $1.63 a Mcfe from $1.73. Natural gas, NGL and oil production cash margin before DD&A fell to $1.91 a Mcfe from $2.00. Fully burdened cash margin before DD&A declined to $1.62 a Mcfe from $1.68.

Net cash provided by operating activities fell to $253.5 million from $279.5 million. Capital expenditures declined to $139.2 million from $142.0 million. Purchases of common stock were $180.2 million.

For 2026, the company narrowed production guidance to 612.5–617.5 Bcfe from 605.0–620.0 Bcfe and raised the liquids mix to about 8%–about 9% from about 7%–about 8%. Adjusted EBITDAX guidance was narrowed to $1,290 million–$1,310 million from $1,265 million–$1,315 million, with the low end raised and the high end lowered. The natural gas differential on open volumes was lowered to negative $0.71 a MMBtu from negative $0.59. NGL realized price guidance was raised to about $26.95 a barrel from about $24.60. Total capital expenditures guidance was raised to $571 million–$586 million from $556 million–$586 million, with drilling and completions raised to $405 million–$410 million from $390 million–$410 million.

Free cash flow guidance includes approximately $50 million in expected asset sales in 2026 and approximately $30 million from the sale of 45Z tax credits for remediation activities in 2025.

Hedge positions as of Oct. 14, 2026 showed 461.2 Bcf hedged for 2026, 409.4 Bcf for 2027, 233.1 Bcf for 2028 and 38.2 Bcf for 2029. NYMEX hedges averaged $3.53 a Mcf for 2026, $4.16 for 2027, $3.98 for 2028 and $3.85 for 2029. Fully covered NYMEX-plus-basis volumes averaged $2.73 a Mcf for 2026, $3.30 for 2027, $3.20 for 2028 and $3.32 for 2029.

One rig was at period end in the Utica. The company plans 34 laterals in 2026, including 24 in the SWPA Marcellus, three in the CPA Marcellus and seven in the Utica.

More on CNX

July 30, 2026 Earnings CNX Resources Revenue Falls as Natural Gas Prices Decline

CNX Resources Corp — all coverage and financials