Free Cash Flow Grows At CNX, Despite Current Challenges

2025-05-16 10:22:16 ET

Summary

• CNX Resources is focused on maximizing free cash flow, which has driven share buybacks, debt reduction, and growth investments despite recent earnings volatility.
• The company’s recent Apex acquisition and operational efficiencies position it for continued FCF growth, with management raising 2025 FCF guidance to $3.97 per share.
• Risks include high short interest, hedging losses, and macroeconomic uncertainty, but strong FCF and efficiency gains support a positive outlook.
• I maintain my Buy rating with a 12% upside target, expecting CNX to deliver another year of FCF and earnings growth despite sector headwinds.

Investment thesis

CNX Resources Corporation’s ( CNX ) share price has picked up since releasing its earnings on April 24, 2025. It’s finally a bit of good news; since last November the price has declined most days....

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