CNX Resources Corporation

CNX did not provide quarterly revenue or EPS figures on this Q&A-only call. On the financial side, management said Treasury confirmed the methane stream cash for the first 4 months of 2025 qualified for the 45Z credit, lifting current-year monetization, and that annual 45Z value was refined to approximately $40 million. Management said combined 45Z sales plus environmental attributes imply about a $90 million-a-year run rate, and the $30 million of credits sold will hit Q3 cash flow and income tax expense rather than EBITDA. For 2026, CNX said capex is still expected to land at the midpoint of guidance, with Q3 slightly higher and Q4 lower due to field timing.

Alan K. Shepard framed capital allocation as unchanged and centered on long-term value per share, saying CNX is in year 6.5 of executing the same philosophy. He emphasized flexibility and said the company is seeing attractive equity opportunities, but is not signaling actions in advance. On gas and buybacks, he said the near-term outlook may be softer, but Appalachia’s longer-term gas outlook remains “tremendous,” and CNX may lean even more into repurchases when the margin of safety is large.

Everett Good focused on the 45Z monetization step-up and the mechanics of how it will appear in the financials. He said Treasury confirmed the methane stream cash for the first 4 months of 2025 qualified for the credit, and Treasury’s revised carbon intensity calculations increased annual monetization to about $40 million. He also said CNX is targeting roughly a $90 million annual run rate when combining 45Z sales and environmental attributes, with the $30 million sold showing up in Q3 cash flow and in income tax expense rather than EBITDA. On the AEC market, he said CNX is marking to market off ICE pricing and currently assumes stability to flat.

Analysts focused on 45Z timing and durability, capex cadence, production timing, buyback capacity, and Utica well performance. Management said Treasury guidance on 45Z should come in the second half of the year, that the current-year cash benefit is already confirmed for the first four months of 2025, and that the AEC market appears relatively stable though volatile. On activity, management said Q3 capex is higher only because of field timing, Q2 spending was as planned, 12 to 13 TILs should hit in Q3, and the remaining Utica pad will come later in Q4. They also said Utica wells are performing as guided and are viewed as top-tier in the basin.