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Form 8-K CNX Resources Corp For: Apr 29

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April 29, 2021 6:49 AM EDT

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1Q 2021 Earnings Results &
Supplemental Information of CNX Resources
TABLE OF CONTENTS:Page:
Production Volumes and Activity Summary........................................................................................................................2
Hedge Volumes and Pricing…...........................................................................................................................................3
Gas Hedging Gain/Loss Projections…..............................................................................................................................4
Consolidated Statements of Income..................................................................................................................................5
Consolidated Balance Sheets............................................................................................................................................6
Consolidated Statements of Cash Flows….......................................................................................................................7
Market Mix and Natural Gas Price Reconciliation…..........................................................................................................8
Price and Cost Data (Per Mcfe).........................................................................................................................................9
Guidance…........................................................................................................................................................................10
Year end 2020 Acreage and Undeveloped Location Update...................................................................................11
Non-GAAP Reconciliations
Definitions..........................................................................................................................................................................12
Sales of Natural Gas, NGL and Oil, including Cash Settlements and Natural Gas, NGL and Oil Production Costs.........
13
Quarterly Adjusted EBITDAX and Adjusted Net Income....................................................................................................14
Operating Margin...............................................................................................................................................................15
Cash Operating Margin......................................................................................................................................................16
Net Debt and Adjusted EBITDAX TTM..............................................................................................................................17
Free Cash Flow..................................................................................................................................................................18

NOTE: Please note that CNX is unable to provide a reconciliation of projected financial results contained in this presentation, including the measures referenced above, to their respective comparable financial measure calculated in accordance with GAAP. This is due to our inability to calculate the comparable GAAP projected metrics, including operating income, net cash provided by operating activities and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.




PRODUCTION VOLUMES
GASQ1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Shale Sales Volumes (Bcf)121.1124.795.296.5112.4
CBM Sales Volumes (Bcf)12.713.313.013.113.2
Other Sales Volumes (Bcf)-0.1---
LIQUIDS*
NGLs Sales Volumes (Bcfe)6.58.16.94.78.3
Oil and Condensate Sales Volumes (Bcfe)0.30.30.60.20.5
TOTAL (Bcfe)140.6146.5115.7114.5134.4
Average Daily Production (MMcfe)1,562.51,592.51,257.61,258.31,476.5
* NGLs, Oil and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices.
Q1 2021 ACTIVITY SUMMARYTDFracTIL
Average Lateral Length(1)
Rigs at Period End
SWPA CentralMarcellus136--1
Utica--214,521-
WV Shirley-PennsboroMarcellus-857,245-
Utica-----
CPA SouthUtica-----
Total13147-1
(1) Measured in lateral feet from perforation to perforation.




2


HEDGE VOLUMES AND PRICING
Q2 202120212022202320242025
NYMEX Hedges
Volumes (Bcf)108.1467.3381.5205.1201.871.5
Average Prices ($/Mcf)$2.95$2.97$2.87$2.73$2.81$2.69
Physical Fixed Price Sales and Index Hedges
Volumes (Bcf)5.322.220.934.918.014.6
Average Prices ($/Mcf)$2.52$2.51$2.50$2.13$2.19$2.14
Total Volumes Hedged (Bcf)(1)
113.4489.5402.3239.9219.786.2
NYMEX + Basis (fully-covered volumes)(2)
Volumes (Bcf)113.4489.5402.3239.9219.786.2
Average Prices ($/Mcf)$2.44$2.48$2.34$2.18$2.24$2.08
NYMEX Hedges Exposed to Basis
Volumes (Bcf)------
Average Prices ($/Mcf)------
Total Volumes Hedged (Bcf)(1)
113.4489.5402.3239.9219.786.2
(1) Hedge positions as of 4/7/2021. Excludes basis hedges in excess of NYMEX hedges of 11.6 Bcf, 22.9 Bcf, 0.1 Bcf,
47.7 Bcf, 46.8 Bcf, and 33.6 Bcf for Q2 2021, 2021, 2022, 2023, 2024, and 2025, respectively.
(2) Includes the impact of NYMEX and basis-only hedges as well as physical sales agreements.
Purchased SwapsQ2 20212021
Basis Hedges
Volumes (Bcf)10.023.5
Average Fixed Prices ($/Mcf)($0.78)($0.78)
For financial hedging, CNX utilizes over-the-counter swaps to manage its exposure to natural gas price fluctuations. Typically,
CNX “sells” swaps under which it receives a fixed price from counterparties and pays a floating market price. In order to
enhance production flexibility, during the first quarter of 2021, CNX purchased, rather than sold, financial swaps for the period
April through October of 2021 under which CNX will pay a fixed price to and receive a floating price from its hedge counter-
parties. Swaps purchased have the effect of reducing total hedged volumes for the period of the swap.











3


HEDGING GAIN/LOSS PROJECTIONS
Q2 2021CY2021
HedgedWtd. Avg.Avg.ForecastedHedgedWtd. Avg.Avg.Forecasted
VolumesHedgedForward
Gain/(Loss)(2)
VolumesHedgedForward
Gain/(Loss)(2)
($/MMBtu)(000 MMBtu)Price
Market(1)
($ in 000s)(000 MMBtu)Price
Market(1)
($ in 000s)
NYMEX118,140$2.70$2.57$15,535509,633$2.72$2.69$11,480
Index----900$2.40$1.98$376
Basis:
DOM South (DOM)12,285($0.51)($0.68)$2,10062,865($0.57)($0.72)$7,917
TCO Pool (TCO)26,120($0.52)($0.48)($1,009)103,980($0.53)($0.53)$1,585
Michcon (NMC)11,830($0.17)($0.13)($422)46,230($0.17)($0.18)$591
TETCO ELA (TEB)1,820($0.09)($0.20)$2007,300($0.09)($0.18)$640
TETCO WLA (TWB)1,820($0.08)($0.07)($21)7,300($0.08)($0.07)($45)
TETCO M3 (TMT)--($0.58)-7,173$0.95($0.32)$5,929
TETCO M2 (BM2)41,405($0.61)($0.70)$3,931170,575($0.60)($0.72)$18,619
Transco Zone 5 South (DKR)1,365($0.13)$0.08($289)6,825$0.55$0.17$2,082
Total Financial Basis Hedges96,645$4,490412,248$37,318
Total Projected Realized Gain$20,025$49,174
Note: Forward market prices, hedged volumes, and hedge prices are as of 4/7/2021. Anticipated hedging activity is not included in projections.
(1) January through April prices are settled.
(2) Forecasted Gain/(Loss) amounts are based on sum of current monthly hedge positions vs. strip.

4

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Dollars in thousands, except per share data
Revenue and Other Operating Income:Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Natural Gas, NGL and Oil Revenue$381,225$287,262$182,213$175,776$251,494
Gain (Loss) on Commodity Derivative Instruments33,414289,977(168,834)(63,303)115,142
Purchased Gas Revenue33,48427,46831,54120,42426,359
Other Revenue and Operating Income24,95021,99621,15515,94423,364
Total Revenue and Other Operating Income473,073 626,703 66,075 148,841 416,359 
Costs and Expenses:
Operating Expense
Lease Operating Expense9,2689,75310,37710,24410,033
Transportation, Gathering and Compression77,15873,60668,81060,02583,242
Production, Ad Valorem, and Other Fees5,9686,6565,9945,3846,162
Depreciation, Depletion and Amortization128,944144,648114,464113,545129,164
Exploration and Production Related Other Costs2,0765,6552,1413,3103,888
Purchased Gas Costs32,41124,19431,72119,98924,998
Impairment of Exploration and Production Properties————61,849
Impairment of Goodwill————473,045
Selling, General, and Administrative Costs28,32133,02422,71423,39930,238
Other Operating Expense15,658 14,911 23,284 26,596 20,681 
Total Operating Expense299,804312,447279,505262,492843,300
Other Expense
Other Expense4,36611,3982,1804,8195,186
(Gain) Loss on Assets Sales and Abandonments, net(2,873)336(3,567)(5,938)(12,055)
Loss (Gain) on Debt Extinguishment—710108344(11,263)
Interest Expense36,372 37,634 37,921 46,256 48,995 
Total Other Expense37,86550,07836,64245,48130,863
Total Costs and Expenses337,669 362,525 316,147 307,973 874,163 
Earnings (Loss) Before Income Tax135,404264,178(250,072)(159,132)(457,804)
Income Tax Expense (Benefit)37,379 68,420 (61,279)(28,646)(152,582)
Net Income (Loss)98,025195,758(188,793)(130,486)(305,222)
Less: Net Income Attributable to Noncontrolling Interest— — 15,905 15,263 23,864 
Net Income (Loss) Attributable to CNX Resources Shareholders$98,025$195,758$(204,698)$(145,749)$(329,086)
Earnings (Loss) per Share
Basic$0.45$0.88($1.03)($0.78)($1.76)
Diluted$0.43$0.87($1.03)($0.78)($1.76)







5

CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dollars in thousands31-Mar-2131-Dec-2030-Sep-2030-Jun-2031-Mar-20
ASSETS
Current Assets:
Cash and Cash Equivalents$29,610$15,617$150,132$19,607$31,833
Restricted Cash733 735 733738853
Accounts and Notes Receivable
Trade, net147,714 145,929 75,92969,17491,477
Other Receivables, net9,719 4,238 4,6537,66910,839
Supplies Inventories7,249 9,657 10,09010,31710,266
Recoverable Income Taxes— 88 644114,440115,261
Derivative Instruments70,251 84,657 77,608197,804312,749
Prepaid Expenses12,170 12,411 12,45010,97312,775
Total Current Assets277,446 273,332 332,239 430,722 586,053 
Property, Plant and Equipment:
Property, Plant and Equipment:11,084,358 10,963,996 10,904,83710,814,03510,691,516
Less-Accumulated Depreciation, Depletion and Amortization4,064,594 3,938,451 3,841,6993,730,2323,622,413
Total Property, Plant and Equipment—Net7,019,764 7,025,545 7,063,138 7,083,803 7,069,103 
Other Non-Current Assets:
Operating Lease Right-of-Use Assets93,226 108,683 124,329141,198159,521
Derivative Instruments235,695 188,237 160,098212,657258,111
Goodwill323,314 323,314 323,314323,314323,314
Other Intangible Assets88,457 90,095 91,73393,37195,009
Restricted Cash5,019 5,247 5,4565,5765,340
Other Non-Current Assets26,316 27,311 28,86729,04332,499
Total Other Non-Current Assets772,027 742,887 733,797 805,159 873,794 
TOTAL ASSETS$8,069,237$8,041,764$8,129,174$8,319,684$8,528,950
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable$114,535$118,185$117,004$148,345$171,890
Derivative Instruments83,762 42,329 144,54583,52749,058
Current Portion of Finance Lease Obligations5,139 6,876 7,4197,29520,451
Current Portion of Long-Term Debt22,055 22,574 22,48822,4307,200
Current Portion of Operating Lease Obligations52,500 52,575 52,03252,11054,622
Other Accrued Liabilities179,916 198,773 164,473162,817197,130
Total Current Liabilities457,907 441,312 507,961 476,524 500,351 
Non-Current Liabilities:
Long-Term Debt2,346,205 2,401,427 2,577,9742,540,7682,640,148
Finance Lease Obligations956 1,057 2,3224,2256,095
Operating Lease Obligations39,965 53,235 66,18079,70192,463
Derivative Instruments83,705 127,290 203,709178,187163,898
Deferred Income Taxes503,653 466,253 398,878370,412376,401
Asset Retirement Obligations82,689 84,712 61,76162,54364,387
Other Non-Current Liabilities43,747 44,041 40,21340,37040,497
Total Non-Current Liabilities3,100,920 3,178,015 3,351,037 3,276,206 3,383,889 
TOTAL LIABILITIES3,558,827 3,619,327 3,858,998 3,752,730 3,884,240 
Stockholders' Equity
Common Stock2,207 2,208 2,2491,8781,874
Capital in Excess of Par Value2,959,934 2,959,357 2,989,6992,261,7292,205,941
Preferred Stock— — — — — 
Retained Earnings1,563,318 1,476,056 1,290,4981,495,1971,641,009
Accumulated Other Comprehensive Loss(15,049)(15,184)(12,270)(12,382)(12,493)
Total CNX Resources Stockholders' Equity4,510,410 4,422,437 4,270,176 3,746,422 3,836,331 
Noncontrolling Interest— — — 820,532808,379
TOTAL STOCKHOLDERS' EQUITY4,510,410 4,422,437 4,270,176 4,566,954 4,644,710 
TOTAL LIABILITIES AND EQUITY$8,069,237$8,041,764$8,129,174$8,319,684$8,528,950



6

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Dollars in thousands
Cash Flows from Operating Activities:Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Net Income (Loss)$98,025$195,758($188,793)($130,486)($305,222)
Depreciation, Depletion and Amortization128,944144,648114,464113,545129,164
Amortization of Deferred Financing Costs6,0346,6005,8076,3482,447
Impairment of Exploration and Production Properties————61,849
Impairment of Goodwill————473,045
Stock-Based Compensation7,5252,4732,5032,5666,840
(Gain) Loss on Asset Sales and Abandonments(2,873)336(3,567)(5,938)(12,055)
Loss (Gain) on Debt Extinguishment—710108344(11,263)
(Gain) Loss on Commodity Derivative Instruments(33,414)(289,977)168,83463,303(115,142)
(Gain) Loss on Other Derivative Instruments(4,194)(1,338)1523,59810,639
Net Cash Received in Settlement of Commodity Derivative Instruments2,40577,49090,310142,256151,161
Deferred Income Taxes37,35268,408(61,278)(25,683)(99,746)
Other(150)(337)(527)1,391161
Changes in Operating Assets
Accounts and Notes Receivable(7,586)(69,738)(3,427)24,63143,639
Recoverable Income Taxes88555113,796821(52,836)
Supplies Inventories411433227(51)(3,282)
Prepaid Expenses290223(1,842)1,8324,710
Changes in Other Assets(36)(306)(129)(296)692
Changes in Operating Liabilities
Accounts Payable(3,807)(18,844)(14,153)(17,810)2,322
Accrued Interest(9,872)9,653(8,409)(495)(5,063)
Other Operating Liabilities56234,0269,141(35,994)(13,626)
Changes in Other Liabilities(56)(49)(55)(84)(1,047)
Net Cash Provided by Operating Activities219,648160,724223,162143,798267,387
Cash Flows from Investing Activities:
Capital Expenditures(123,429)(92,055)(108,335)(134,852)(152,049)
Proceeds from Asset Sales5,00516,3415,85512,15113,975
Net Cash Used in Investing Activities(118,424)(75,714)(102,480)(122,701)(138,074)
Cash Flows from Financing Activities:
Payments on Miscellaneous Borrowings(1,838)(1,807)(1,779)(1,777)(1,792)
Payments on Long-Term Notes—(363,348)(50,000)(408,985)(59,880)
Net (Payments on) Proceeds from CNXM Revolving Credit Facility(54,000)(52,000)24,000(28,000)35,250
Net (Payments on) Proceeds from CNX Revolving Credit Facility(800)(249,200)(140,000)113,000(224,000)
Proceeds from Issuance of CNX Senior Notes—500,000207,000——
Net (Payments on) Proceeds from CSG Non-Revolving Credit Facilities(5,823)(5,587)(5,202)(3,667)173,250
Proceeds from Issuance of Convertible Senior Notes———334,650—
Purchase of Capped Call Related to Convertible Senior Notes———(35,673)—
Distributions to CNXM Noncontrolling Interest Holders——(21,055)(3,489)(17,443)
Proceeds from Issuance of Common Stock4,7992521511,6504
Shares Withheld for Taxes(4,491)(61)(1)(63)(1,890)
Purchases of Common Stock(23,988)(37,247)———
Debt Issuance and Financing Fees(1,320)(10,734)(3,396)(848)(11,069)
Net Cash (Used in) Provided by Financing Activities(87,461)(219,732)9,718(33,202)(107,570)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash13,763(134,722)130,400(12,105)21,743
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period21,599156,32125,92138,02616,283
Cash, Cash Equivalents, and Restricted Cash at End of Period$35,362$21,599$156,321$25,921$38,026





7

MARKET MIX AND NATURAL GAS PRICE RECONCILIATION
2021E
Gas Sold (%)(1)
Basis
DOM South3%($0.72)
ETNG Mainline3%$0.07
TCO Pool21%($0.53)
TETCO ELA & WLA4%($0.13)
TETCO M36%($0.32)
TETCO M233%($0.72)
Michcon9%($0.18)
Physical basis sales21%($0.32)
Weighted Average Basis100%($0.47)
NYMEX$2.69
Weighted Average Basis (Not considering hedging)($0.47)
Realized Price (per MMBtu)$2.22
Conversion Factor (MMBtu/Mcf)1.092
Realized Price Before Financial Hedging (per Mcf)$2.42
(1) Individual market percentages exclude physical basis sales.

8

PRICE AND COST DATA (PER MCFE) - NON-GAAP
Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Average Sales Price - Natural Gas$2.60$1.90$1.51$1.54$1.83
Average Gain on Commodity Derivative Instruments - Cash Settlement- Gas(1)
$0.02$0.56$0.83$1.03$0.77
Average Sales Price - Oil and Condensate*$6.48$5.33$6.58$4.40$6.59
Average Sales Price - NGLs*$4.93$2.88$2.19$1.31$2.34
Average Sales Price of Natural Gas, NGL and Oil, including Cash Settlement
$2.73$2.49$2.36$2.52$2.59
Lease Operating Expense (LOE)$0.07$0.07$0.09$0.09$0.07
Production, Ad Valorem, and Other Fees$0.04$0.05$0.05$0.05$0.05
Transportation, Gathering and Compression$0.55$0.50$0.59$0.52$0.62
Depreciation, Depletion and Amortization (DD&A)$0.90$0.96$0.98$0.97$0.94
Total Natural Gas, NGL and Oil Production Costs
$1.56$1.58$1.71$1.63$1.68
Total Natural Gas, NGL and Oil Production Cash Costs, before DD&A
$0.66$0.62$0.73$0.66$0.74
Natural Gas, NGL and Oil Production Cash Margin, before DD&A$2.07$1.87$1.63$1.86$1.85
Fully Burdened Cash Costs, before DD&A(2)
$1.01$1.01$1.17$1.29$1.20
Fully Burdened Cash Margin, before DD&A$1.72$1.48$1.19$1.23$1.39
Note: "Total Natural Gas, NGL and Oil Production Costs" excludes Selling, General, and Administration and Other Operating Expenses.
*NGLs, Oil, and Condensate are converted to Mcfe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship of oil, NGLs, condensate, and natural gas prices.
(1) Excludes hedge monetizations.
(2) Fully burdened cash costs include production cash costs, selling, general and administrative (SG&A) cash costs, other operating cash expense, other cash (income) expense, other revenue and operating income, and cash interest expense. Q1 2021, Q4 2020,Q3 2020, Q2 2020, and Q1 2020 total fully burdened cash costs exclude a gain on asset sales of $0.02 per Mcfe, $0.00 per Mcfe, $0.03 per Mcfe, $0.07 per Mcfe, and $0.09 per Mcfe, respectively. Q1 2021, Q4 2020, Q3 2020, Q2 2020 and Q1 2020 exclude unrealized losses on interest rate swaps and noncash amortization of $0.01 per Mcfe, $0.04 per Mcfe, $0.05 per Mcfe, $0.08 per Mcfe and $0.08 per Mcfe, respectively. Q42020 and Q32020 also exclude fees related to the Merger of CNX Midstream of $0.05 per Mcfe and $0.04 per Mcfe, respectively.
Natural Gas Price ReconciliationQ1-2021Q4-2020Q3-2020Q2-2020Q1-2020
NYMEX Natural Gas ($/MMBtu)$2.69$2.66$1.98$1.72$1.95
Average Differential(0.30)(0.91)(0.57)(0.29)(0.26)
BTU Conversion (MMBtu/Mcf)*0.210.150.100.110.14
Gain on Commodity Derivative Instruments-Cash Settlement(1)
0.020.560.831.030.77
Realized Gas Price per Mcf$2.62$2.46$2.34$2.57$2.60
*Conversion factor1.091.081.071.081.08
(1) Excludes hedge monetizations.







9

GUIDANCE
PreviousUpdated
($ in millions)2021E2021E
Capital ExpendituresLowHighLowHigh
Drilling & Completions (D&C)--
Non-D&C--
Total Capital$430-$470$430-$470
Production Volumes (Bcfe)540-570540-570
% of Natural Gas Hedged90%94%
Prices on Open Volumes(1)
Natural Gas NYMEX ($/MMBtu)$2.78$2.69
Natural Gas Basis Differential ($/MMBtu)($0.41)($0.47)
NGL Realized Price ($/Bbl)~$15.00~$20.00
($ in millions)
Adjusted EBITDAX(2)
$950-$1,000$950-$1,000
($ in millions)
Free Cash Flow (FCF)(2)
~$425~$450
FCF Per Share(2)(3)
$1.93$2.04
(1) Forward market prices for updated guidance as of 4/7/2021.
(2) Non-GAAP measures. See “Non-GAAP Financial Measures” for definitions. FCF for previous and updated guidance includes approximately $50 million in expected asset sales in 2021.
(3) Previous guidance for 2021 FCF per share based on shares outstanding of 219,707,417 as of 1/20/2021. Updated guidance for 2021 FCF per share based on shares outstanding of 220,270,090 as of 4/15/2021.
2021E ACTIVITY SUMMARYTIL
Average Lateral Length(1)
SWPA CentralMarcellus2412,000
Utica214,500
WV Shirley-PennsboroMarcellus1112,000
Utica--
Total37-
(1) Measured in lateral feet from perforation to perforation.







10

YEAR END 2020 ACREAGE AND UNDEVELOPED LOCATION UPDATE
YE2019 MARCELLUS ACREAGEYE2020 MARCELLUS ACREAGE
SWPACentralGreaterTOTAL SWPASWPACentralGreaterTOTAL SWPA
Total Net Acres88,30030,600118,900Total Net Acres91,20029,500120,700
Net Developed Acres34,6002,40037,000Net Developed Acres39,7002,40042,100
Net Undeveloped Locations328172Net Undeveloped Locations315166
Average Lateral Length (ft)9,5009,500Average Lateral Length (ft)9,5009,500
Inter-Lateral Spacing (ft)750750Inter-Lateral Spacing (ft)750750
WV SHR/PENS  East  TOTAL WV WVSHR/PENSEastTOTAL WV
Total Net Acres15,60011,00087,700Total Net Acres16,00010,80088,800
Net Developed Acres7,6001007,700Net Developed Acres7,6001407,740
Net Undeveloped Locations5879Net Undeveloped Locations6177
Average Lateral Length (ft)8,0008,000Average Lateral Length (ft)8,0008,000
Inter-Lateral Spacing (ft)750750Inter-Lateral Spacing (ft)750750
CPA South  North  TOTAL CPA CPASouthNorthTOTAL CPA
Total Net Acres103,00094,800300,200Total Net Acres107,20094,000302,900
Net Developed Acres5,1009006,000Net Developed Acres5,1009006,000
Net Undeveloped Locations632606Net Undeveloped Locations659601
Average Lateral Length (ft)9,0009,000Average Lateral Length (ft)9,0009,000
Inter-Lateral Spacing (ft)750750Inter-Lateral Spacing (ft)750750
OH TOTAL OH OHTOTAL OH
Total Net Acres12,500Total Net Acres11,700
Net Developed Acres200Net Developed Acres173
Net Undeveloped LocationsNet Undeveloped Locations
Average Lateral Length (ft)Average Lateral Length (ft)
Inter-Lateral Spacing (ft)Inter-Lateral Spacing (ft)
Total Net Acres519,300Total Net Acres524,100
YE2019 UTICA ACREAGEYE2020 UTICA ACREAGE
SWPACentralGreaterTOTAL SWPASWPACentralGreaterTOTAL SWPA
Total Net Acres114,80057,100171,900Total Net Acres113,20057,000170,200
Net Developed Acres3,400—3,400Net Developed Acres3,400—3,400
Net Undeveloped Locations439225Net Undeveloped Locations433225
Average Lateral Length (ft)8,5008,500Average Lateral Length (ft)8,5008,500
Inter-Lateral Spacing (ft)1,3001,300Inter-Lateral Spacing (ft)1,3001,300
WVSHR/PENSEastTOTAL WVWVSHR/PENSEastTOTAL WV
Total Net Acres12,90084,000133,600Total Net Acres13,00084,700134,700
Net Developed Acres———Net Developed Acres———
Net Undeveloped Locations62402Net Undeveloped Locations62405
Average Lateral Length (ft)7,0007,000Average Lateral Length (ft)7,0007,000
Inter-Lateral Spacing (ft)1,300 1,300 Inter-Lateral Spacing (ft)1,3001,300
CPASouthNorthTOTAL CPACPASouthNorthTOTAL CPA
Total Net Acres106,90095,000240,600Total Net Acres107,50094,000240,700
Net Developed Acres700200900Net Developed Acres1,6002001,800
Net Undeveloped Locations508454Net Undeveloped Locations507449
Average Lateral Length (ft)7,0007,000Average Lateral Length (ft)7,0007,000
Inter-Lateral Spacing (ft)1,3001,300Inter-Lateral Spacing (ft)1,3001,300
OHDryTOTAL OHOHDryTOTAL OH
Total Net Acres15,60062,200Total Net Acres15,70064,200
Net Developed Acres11,60011,600Net Developed Acres13,20013,200
Net Undeveloped Locations14Net Undeveloped Locations9
Average Lateral Length (ft)9,500Average Lateral Length (ft)9,500
Inter-Lateral Spacing (ft)1,300Inter-Lateral Spacing (ft)1,300
Total Net Acres608,300Total Net Acres609,800
Note: Acres by type curve area do not equal total acres because some CNX-controlled acres fall outside of identified type curve areas. Locations calculated by dividing total controlled acreage in type curve region by area of a well.


11

Non-GAAP Measures (Definitions, Purpose, and Reconciliations)

CNX's management uses certain non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful for investors in analyzing the company. Although these are not measures of performance calculated in accordance with generally accepted accounting principles (GAAP), management believes that these financial measures are useful to an investor in evaluating CNX because (i) analysts utilize these metrics when evaluating company performance and have requested this information as of a recent practicable date, (ii) these metrics are widely used to evaluate a company’s operating performance, and (iii) we want to provide updated information to investors. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with GAAP. In addition, because all companies do not calculate these measures identically, these measures may not be comparable to similarly titled measures of other companies.

Definitions: EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below. Although EBIT, EBITDAX, and adjusted EBITDAX are not measures of performance calculated in accordance with generally accepted accounting principles, management believes that they are useful to an investor in evaluating CNX Resources because they are widely used to evaluate a company's operating performance. We exclude stock-based compensation from adjusted EBITDAX because we do not believe it accurately reflects the actual operating expense incurred during the relevant period and may vary widely from period to period irrespective of operating results. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT, EBITDAX or adjusted EBITDAX identically, the presentation here may not be comparable to similarly titled measures of other companies. Sales of natural gas, NGL and oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Natural gas, NGL and oil production costs excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations. Adjusted Net Income is defined as net income after adjusting for the discrete items listed below as well as the tax effectiveness. Operating Margins are defined as adjusted EBIT divided by Total Revenue after adjusting for unrealized loss on commodity derivative instruments. Adjusted Trailing-Twelve-Months (TTM) EBITDAX is defined as EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below. Cash Operating Margins are defined as adjusted EBITDA divided by total Revenue after adjusting for unrealized loss on commodity derivative instruments. Net Debt is defined as total long-term debt minus cash and cash equivalents. Free Cash Flow (FCF) is defined as operating cash flow minus capex plus proceeds from asset sales. Organic FCF is defined as operating cash flow minus capex.

Reconciliations of EBIT, EBITDAX, adjusted EBITDAX, sales of natural gas, NGL and oil, including cash settlements, natural gas, NGL and oil production costs, adjusted net income, operating margins, cash operating margins, net debt, Adjusted TTM EBITDAX, FCF and organic FCF to the most directly comparable GAAP financial measures are as follows:








12

Non-GAAP Measures
Sales of Natural Gas, NGL and Oil, including cash settlements excludes the impacts of changes in the fair value of commodity derivative instruments prior to settlement, which are often volatile, and only includes the impact of settled commodity derivative instruments. Sales of Natural Gas, NGL and Oil, including cash settlements also excludes purchased gas revenue and other revenue and operating income, which are not directly related to CNX’s natural gas producing activities. Natural Gas, NGL and Oil Production Costs excludes certain expenses that are not directly related to CNX’s natural gas producing activities and are managed outside our production operations (See Note 21 - Segment Information of the Notes to the Audited Consolidated Financial Statements in Item 8 of CNX's 2020 Annual Report on Form 10-K as filed with the SEC on February 9, 2021). These expenses include, but are not limited to, interest expense, impairment of exploration and production properties, impairment of goodwill and other corporate expenses such as selling, general and administrative costs.
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Total Revenue and Other Operating Income$473$627$66$149$416
Add (Deduct):
Purchased Gas Revenue(34)(28)(32)(20)(26)
Gain or Loss on Commodity Derivative Instruments and Monetization(31)(212)259 176 (19)
Other Operating Income(25)(22)(21)(16)(24)
Sales of Natural Gas, NGL and Oil, including Cash Settlements, a Non-GAAP Financial Measure$383$365$272$289$347
Total Operating Expense$300$312$280$263$843
Add (Deduct):
Depreciation, Depletion and Amortization (DD&A) - Corporate (3)(2)(3)(3)(2)
   Exploration and Production Related Other Costs(2)(6)(2)(3)(4)
Purchased Gas Costs(33)(24)(32)(20)(25)
Impairment of Exploration and Production Properties— — — — (62)
Impairment of Goodwill— — — — (473)
Selling, General and Administrative Costs(28)(33)(23)(23)(30)
Other Operating Expense(16)(15)(23)(27)(21)
Natural Gas, NGL and Oil Production Costs, a Non-GAAP Financial Measure1
$218$232$197$187$226
1 Natural Gas, NGL and Oil production costs consists primarily of lease operating expense, production ad valorem and other fees, transportation, gathering and compression and production related depreciation, depletion and amortization.









13

Non-GAAP Measures
EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX is defined as EBITDAX after adjusting for the discrete items listed below.
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Net Income (Loss)$98$196($189)($130)($306)
Interest Expense37 38 384650
Interest Income— — (2)— — 
Income Tax Expense (Benefit)37 68 (61)(29)(152)
Earnings (Loss) Before Interest & Taxes (EBIT)172 302 (214)(113)(408)
Depreciation, Depletion & Amortization129 144 115114128
Exploration Expense2 6 234
Earnings (Loss) Before Interest, Taxes, DD&A and Exploration (EBITDAX)$303$452$(97)$4$(276)
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments(31)(212)25920635
Merger Related Costs— 6 5— — 
Stock-Based Compensation8 2 327
Impairment of Exploration and Production Properties— — — — 62
Impairment of Goodwill— — — — 473
Loss (Gain) on Debt Extinguishment— 1 — — (11)
Severance— 1 — — — 
Total Pre-tax Adjustments(23)(202)267 208 566 
Adjusted EBITDAX$280$250$170$212$290
Adjusted Net Income is defined as net income after adjusting for the discrete items listed below as well as the related tax effect.
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Net Income (Loss) from EBITDAX Reconciliation$98$196($189)($130)($306)
Adjustments:
Total Pre-tax Adjustments from EBITDAX Reconciliation(23)(202)267208566
Tax Effect of Adjustments6 53(70)(54)(148)
Adjusted Net Income$81$47$8$24$112






14

Non-GAAP Measures
Operating Margin: Adjusted EBIT divided by Total Revenue after adjusting for unrealized (gain) loss on commodity derivative instruments.
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Total Revenue and Other Operating Income $473$627$66$149$416
Net Income (Loss)$98$196($189)($130)($306)
Interest Expense3738384650
Interest Income——(2)——
Income Tax Expense (Benefit)3768(61)(29)(152)
Earnings (Loss) Before Interest & Taxes (EBIT)172302(214)(113)(408)
Depreciation, Depletion & Amortization129144115114128
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA)$301$446($99)$1($280)
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments($31)($212)$259$206$35
Merger Related Costs—65——
Impairment of Exploration and Production Properties————62
Impairment of Goodwill————473
Total Adjustments($31)($206)$264$206$570
Total Revenue Minus Unrealized (Gain) Loss on Commodity Derivative Instruments$442$415$325$355$451
Adjusted EBIT$141$96$50$93$162
Operating Margin32%23%15%26%36%















15

Non-GAAP Measures
Cash Operating Margin: Adjusted EBITDA divided by Total Revenue after adjusting for unrealized (gain) loss on commodity derivative instruments.
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Total Revenue and Other Operating Income$473$627$66$149$416
Net Income (Loss)$98$196$(189)$(130)$(306)
Interest Expense3738384650
Interest Income——(2)——
Income Tax Expense (Benefit)3768(61)(29)(152)
Earnings (Loss) Before Interest & Taxes (EBIT)172302(214)(113)(408)
Depreciation, Depletion & Amortization129144115114128
Earnings (Loss) Before Interest, Taxes, DD&A (EBITDA)$301$446$(99)$1$(280)
Adjustments:
Unrealized (Gain) Loss on Commodity Derivative Instruments$(31)$(212)$259$206$35
Stock-Based Compensation82327
Merger Related Costs—65——
Impairment of Exploration and Production Properties————62
Loss (Gain) on Debt Extinguishment—1——(11)
Impairment of Goodwill————473
Total Adjustments$(23)$(203)$267$208$566
Total Revenue Minus Unrealized (Gain) Loss on Commodity Derivative Instruments$442$415$325$355$451
Adjusted EBITDA$278$243$168$209$286
Cash Operating Margin63 %59 %52 %59 %63 %















16

Non-GAAP Measures
Net Debt: Total long-term debt minus cash and cash equivalents.
Management uses net debt to determine the company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt attributable to CNX Resources shareholders is useful to investors in determining the company's leverage ratio since the company could choose to use its cash and cash equivalents to retire debt.
(Dollars in millions)
Net Debt31-Mar-21
Total Long-Term Debt (GAAP)(1)
$2,368
Less: Cash and Cash Equivalents35
Net Debt$2,333
(1) Includes current portion
Adjusted TTM EBITDAX: EBITDAX over the trailing-twelve-months after adjusting for the discrete items listed below.
Three Months EndedTwelve Months Ended
(Dollars in millions)30-Jun-2030-Sep-2031-Dec-2031-Mar-2131-Mar-21
Net (Loss) Income$(130)$(189)$196$98$(25)
Interest Expense46383837159
Interest Income—(2)——(2)
Income Tax (Benefit) Expense(29)(61)683715
(Loss) Earnings Before Interest & Taxes (EBIT)(113)(214)302172147
Depreciation, Depletion & Amortization114115144129502
Exploration Expense326213
Earnings (Loss) Before Interest, Taxes, DD&A, and Exploration (EBITDAX)4(97)452303662
Adjustments:
Unrealized Loss (Gain) on Commodity Derivative Instruments206259(212)(31)222
Merger Related Costs—56—11
Stock Based Compensation232815
Loss on Debt Extinguishment——1—1
Severance——1—1
Total Pre-tax Adjustments208267(202)(23)250
Adjusted EBITDAX TTM$212$170$250$280$912





17

Non-GAAP Measures
The Company's management believes that the following measures provide useful information to external users of the Company's consolidated financial statements, such as industry analysts, lenders and ratings agencies. Free cash flow and organic free cash flow should not be considered as alternatives to net cash provided by operating activities or any other measure of liquidity presented in accordance with GAAP.                                    
Free Cash Flow (FCF): Operating cash flow minus capex plus proceeds from asset sales.
Organic Free Cash Flow (FCF): Operating cash flow minus capex.
Free Cash Flow
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Net Cash Provided by Operating Activities$219$161$223$144$267
Capital Expenditures(123)(92)(108)(135)(152)
Proceeds from Asset Sales51661214
Free Cash Flow$101$85$121$21$129
Organic Free Cash Flow
(Dollars in millions)Q1-2021Q4-2020Q3-2020Q2-2020Q1-2020
Net Cash Provided by Operating Activities$219$161$223$144$267
Capital Expenditures(123)(92)(108)(135)(152)
Organic Free Cash Flow$96$69$115$9$115

Risk Factors

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 "Forward- Looking Statements" and "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; the failure to realize the anticipated costs savings, synergies and other benefits of CNX’s purchase of the outstanding interests in 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 national and global economic conditions, generally; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; the financial condition of our customers; any non-performance by customers of their contractual obligations; changes in customer, employee or supplier relationships resulting from the proposed transaction; and changes in safety, health, environmental and other regulations.

18

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