CNX Resources : Q4 2022 Earnings Results & Supplemental Information of CNX Corporation

4Q 2022 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 and Actuals	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
Non-GAAP Reconciliations
Definitions	11
Sales of Natural Gas, NGL and Oil, including Cash Settlements and Natural Gas, NGL and Oil Production Costs	12
Quarterly Adjusted EBITDAX and Adjusted Net Income	13
Operating Margin	14
Cash Operating Margin	15
Net Debt and Adjusted EBITDAX TTM	16
Free Cash Flow	17

NOTE: Please note that CNX is unable to provide a reconciliation of non-GAAP projected financial results contained in this presentation, including the non-GAAP 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

GAS

Shale Sales Volumes (Bcf)

CBM Sales Volumes (Bcf)

Other Sales Volumes (Bcf)

LIQUIDS*

NGLs Sales Volumes (Bcfe)

Oil and Condensate Sales Volumes (Bcfe)

TOTAL (Bcfe)

Q4-2022Q3-2022

119.0		125.1
10.5		10.7
0.1		0.2
10.5		10.2
0.5		0.2
140.6
	146.4

Q2-2022Q1-2022YTD-2022

122.1		130.5	496.7
11.0		11.5	43.7
0.1		-	0.4
8.8		8.5	38.0
0.3		0.4	1.4
142.3
	150.9		580.2

Q4-2021

135.8

12.0

0.1

9.7

0.6

158.2

Average Daily Production (MMcfe)

1,528.4

1,590.9

1,564.1

1,676.2

1,589.5

1,719.4

• 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.

Q4 2022 ACTIVITY SUMMARY

SWPA Central		Marcellus
	Utica
WV Shirley-Pennsboro		Marcellus
	Utica
CPA South		Marcellus
	Utica
Total

(1) Measured in lateral feet from perforation to perforation.

TD

9

-

-

-

-

-

9

Frac

3

2

-

-

1

-

6

TIL

2 -

8

-

-

-

10

Average

Lateral

Length(1)

6,080

-

10,340

-

-

-

-

Rigs at

Period

End

2

-

-

-

-

-

2

2

HEDGE VOLUMES AND PRICING(1)

NYMEX Hedges

Q1 2023

2023 2024 2025 2026 2027

Volumes (Bcf)

Average Prices ($/Mcf)

Physical Fixed Price Sales and Index Hedges

Volumes (Bcf)

Average Prices ($/Mcf)

Total Volumes Hedged (Bcf)(2)

NYMEX + Basis (fully-covered volumes)(3) Volumes (Bcf)

Average Prices ($/Mcf)

NYMEX Hedges Exposed to Basis Volumes (Bcf)

Average Prices ($/Mcf) Total Volumes Hedged (Bcf)(2)

Estimated Conversion Factor(4)

72.5 $3.12

8.6 $2.25

81.1

81.1 $2.69

-

-

81.1

1.081

388.6 274.7

$3.03

$3.02

34.8 106.6

$2.17

$2.32

423.4 381.3

423.4 380.0

$2.47

$2.38

• 1.3

-

$3.02

423.4 381.3

1.079 1.074

224.9	232.7		64.3
$3.22				$3.26		$4.17
129.4	89.0		76.2
$2.31				$2.61		$3.32
354.3				321.7		140.5
354.3	265.7		122.4
$2.37				$2.47		$3.23
-		56.0		18.1
-				$3.26		$4.17
354.3				321.7		140.5
1.072	1.071		1.066

1. Hedge positions as of 1/5/2023.
2. Excludes basis hedges in excess of NYMEX hedges of 22.8 Bcf, 6.2 Bcf, and 18.9 Bcf for Q1 2023, 2023, and 2025, respectively.
3. Includes the impact of NYMEX and basis-only hedges as well as physical sales agreements.
4. To convert Bcf to TBtu, multiply by conversion factor; to convert $/Mcf to $/MMBtu, divide by conversion factor.

3

HEDGING GAIN/LOSS PROJECTIONS

Q1 2023

CY2023

($/MMBtu)

NYMEX

	Wtd. Avg.	Avg.	Forecasted			Wtd. Avg.	Avg.	Forecasted
Hedged Volumes	Hedged	Forward	Gain/(Loss)(2)		Hedged Volumes	Hedged	Forward	Gain/(Loss)(2)
(000 MMBtu)	Price	Market(1)	($ in 000s)		(000 MMBtu)	Price	Market(1)	($ in 000s)
78,300	$2.88	$3.95	($84,257)	419,300	$2.81	$3.80	($409,933)

Index

Basis:

Eastern Gas-South (DOM) TCO Pool (TCO)

Michcon (NMC)

TETCO M3 (TMT)

TETCO M2 (BM2)

Transco Zone 5 South (DKR)

Total Financial Basis Hedges

Total Projected Realized Loss

9,000	$1.98	$3.14	($10,440)
14,625	($0.66)	($0.87)	$3,069
20,250	($0.61)	($0.66)	$1,039
10,800	($0.25)	($0.29)	$404
2,250	$1.74	$4.30	($5,734)
39,150	($0.56)	($0.74)	$6,937
3,150	$1.98	$6.04	($12,737)
90,225			($7,022)
			($101,719)

36,500	$1.98	$2.81	($30,295)
59,313	($0.66)	($0.99)	$19,878
100,850	($0.64)	($0.79)	$16,332
43,190	($0.25)	($0.30)	$2,116
7,750	($0.19)	$0.78	($8,964)
158,775	($0.56)	($0.99)	$67,925
12,165	$0.62	$2.31	($20,356)
382,043			$76,931
			($363,297)

Note: Forward market prices, hedged volumes, and hedge prices are as of 1/5/2023. Anticipated hedging activity is not included in projections.

1. January 2023 prices are settled.
2. Forecasted Gain/(Loss) amounts are based on sum of current monthly hedge positions vs. strip.

Actual Change in Derivatives (Dollars in millions)

Realized Loss Unrealized Gain (Loss)

Gain (Loss) on Commodity Derivative Instruments

Q4-2022

($360) $1,138

$778

Q3-2022		Q2-2022
($651)	($531)
($411)		($122)
($1,062)		($653)

Q1-2022

($271) ($1,456)

($1,727)

YTD-2022

($1,813) ($851)

($2,664)

Q4-2021

($400) $780

$380

4

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Dollars in thousands, except per share data Revenue and Other Operating Income (Loss): Natural Gas, NGL and Oil Revenue

Gain (Loss) on Commodity Derivative Instruments Purchased Gas Revenue

Other Revenue and Operating Income

Total Revenue and Other Operating Income (Loss) Costs and Expenses:

Operating Expense

Lease Operating Expense

Transportation, Gathering and Compression

Production, Ad Valorem, and Other Fees

Depreciation, Depletion and Amortization

Exploration and Production Related Other Costs

Purchased Gas Costs

Selling, General, and Administrative Costs Other Operating Expense

Total Operating Expense

Other Expense

Other Expense (Income)

(Gain) Loss on Assets Sales and Abandonments, net Loss on Debt Extinguishment

Interest Expense

Total Other Expense

Total Costs and Expenses

Earnings (Loss) Before Income Tax

Income Tax Expense (Benefit)

Net Income (Loss)

Q4-2022 $776,740 777,615 61,421 21,054

1,636,830

17,739

96,385

11,599

112,245

1,212

62,217

31,961

9,818

343,176

3,494

(1,426)

19

35,218

37,305

380,481

1,256,349

81,770

$1,174,579

Q3-2022		Q2-2022		Q1-2022		YTD-2022
$1,127,341		$1,003,406		$744,625		$3,652,112
(1,062,353)	(652,643)	(1,726,394)	(2,663,775)
31,738		46,552		45,841		185,552
20,335	23,103	22,830	87,322
117,061		420,418		(913,098)		1,261,211
19,239	14,282	15,398	66,658
96,632		88,357		88,286		369,660
13,481	9,958	9,927	44,965
114,167		116,180		118,623		461,215
685	4,712	1,689	8,298
32,309		46,041		44,816		185,383
27,722	30,454	31,560	121,697
21,238		20,539		12,170		63,765
325,473	330,523	322,469	1,321,641
1,922	5,179	(736)	9,859
12,077		(6,240)		(13,395)		(8,984)
9,953	12,981		-	22,953
34,351		31,051		27,069		127,689
58,303	42,971	12,938	151,517
383,776		373,494		335,407		1,473,158
(266,715)	46,924	(1,248,505)	(211,947)
160,357		13,567		(325,564)		(69,870)
($427,072)		$33,357		($922,941)		($142,077)

Q4-2021

$847,340 379,982 33,212 30,656

1,291,190

15,547

91,754

11,086

133,833

12,548

32,622

35,908

16,203

349,501

2,340

(19,705)

15,084

37,264

34,983

384,484

906,706

276,394

$630,312

Earnings (Loss) per Share

Basic

Diluted

Weighted-Average Shares Outstanding

Weighted-Average Shares of Common Stock Outstanding

Effect of Diluted Shares*

Weighted-Average Diluted Shares of Common Stock Outstanding

$6.64		$(2.28)		$0.17		$(4.62)		$(0.75)	$3.02
$5.68		$(2.28)		$0.15		$(4.62)		$(0.75)	$2.90
Q4-2022		Q3-2022		Q2-2022		Q1-2022		YTD-2022		Q4-2021
176,916,881		187,511,940		194,021,639		199,854,257		189,507,682	208,454,502
30,127,743		-		30,387,055		-		-		8,834,883
207,044,624		187,511,940		224,408,694		199,854,257		189,507,682		217,289,385

*During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards and the potential share settlement impact related to CNX's Convertible Notes are antidilutive.

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