CNX Resources Reports $197.7 Million Net Loss in Q1 2025 Amid Revenue Decline

CNX Resources Corporation reported a significant net loss of $197.7 million, or $1.34 per diluted share, for the first quarter of 2025, a stark contrast to a net income of $6.9 million, or $0.04 per diluted share, in the same period of 2024. The company's total revenue and other operating income for the quarter amounted to $82.4 million, down from $384.6 million year-over-year. This decline was primarily driven by an unrealized loss on commodity derivative instruments totaling $528.2 million, compared to a gain of $7.5 million in the prior year. The decrease in revenue was also influenced by lower purchased gas revenue and other operating income.

In terms of operational performance, CNX's natural gas, NGL, and oil revenue reached $551.1 million, reflecting a 69.1% increase from $325.9 million in the previous year. This growth was attributed to a 68.7% rise in the average sales price of natural gas, which increased to $3.66 per Mcf, alongside a 5% increase in total sales volumes. The company reported total production volumes of 147.8 Bcfe for the quarter, which included contributions from the recently completed acquisition of Apex Energy II, LLC, aimed at expanding its shale undeveloped leasehold in Pennsylvania.

The company's total operating expenses for the quarter were $355.2 million, up from $378.2 million in the same period last year. This increase was driven by higher lease operating expenses and depreciation, depletion, and amortization costs, which rose to $127.1 million from $118.7 million. CNX's capital expenditures for the quarter were $131.5 million, reflecting a decrease from $168.2 million in the prior year, as the company adjusted its drilling and completion activities.

As of March 31, 2025, CNX's total assets were reported at $9.05 billion, an increase from $8.51 billion at the end of 2024. The company’s total liabilities also rose to $5.28 billion, compared to $4.41 billion at the end of the previous year. The increase in liabilities was primarily due to a rise in long-term debt, which reached $2.35 billion, up from $1.84 billion. CNX's stockholders' equity decreased to $3.77 billion from $4.10 billion, reflecting the impact of the net loss during the quarter.

Looking ahead, CNX Resources anticipates continued volatility in commodity prices, which could affect its financial performance. The company plans to manage this risk through various hedging strategies and expects to maintain compliance with its debt covenants. The outlook for production volumes is projected to range between 605.0 Bcfe and 620.0 Bcfe for the year ending December 31, 2025, as CNX continues to focus on operational efficiency and strategic growth initiatives.