Key Highlights

● Second-quarter net income was $202.9 million, aided by $176 million of derivative gains.

● The realised natural gas price fell to $2.73 per Mcf sequentially.

● Common stock purchases rose to $200.4 million from $54.0 million in the first quarter.

● Net debt fell to $2,215 million at 30 June from $2,408 million.

CNX Resources Corporation (NYSE:CNX) describes itself as a natural gas development, production, midstream and technology company centred in Appalachia. It reported 9.7 trillion cubic feet equivalent of proved natural gas reserves at 31 December 2025, and its investor relations materials state that it is a member of the S&P MidCap 400. Second-quarter 2026 results were announced on 30 July 2026. Production was 151.5 Bcfe, or 1,664.8 MMcfe per day, compared with 152.4 Bcfe in the first quarter. The realised natural gas price was $2.73 per Mcf, down from $3.15 in the first quarter, and the average price including cash settlements was $2.87 per Mcfe. Liquids were about 7% of volume in the 2026 guidance.

Earnings, cash flow and derivative effects

Net income was $202.9 million, or $1.32 per diluted share, against $348.1 million in the first quarter. Adjusted net income was $110 million. Net income includes second-quarter derivative gains of $176 million, of which $45 million was realised and $131 million unrealised. Adjusted EBITDAX was $290 million, versus $400 million in the first quarter, and the trailing-twelve-month figure was $1,280 million. Free cash flow was $138 million. These are reported facts; the sequential decline in adjusted EBITDAX is consistent with the lower realised gas price, though that attribution is editorial.

Buybacks, debt and unchanged guidance

Capital allocation favoured buybacks. Common stock purchases were $200.4 million in the quarter, against $54.0 million in the first quarter. Net debt fell to $2,215 million at 30 June from $2,361 million at 31 March and $2,408 million at 31 December 2025. Full-year guidance was left largely intact: production of 605 to 620 Bcfe, adjusted EBITDAX of $1,265 million to $1,315 million and total capital expenditure of $556 million to $586 million. Free cash flow guidance is about $525 million, or about $3.55 per share, up from $3.41, helped by expected environmental attribute sales of about $80 million, roughly $45 million from asset sales and about $30 million from 45Z tax credit sales. The NYMEX assumption was lowered to $3.55 per MMBtu from $3.64. Trailing-twelve-month adjusted EBITDAX of $1,280 million sits slightly below the midpoint of the full-year guidance range, which is itself unchanged. Total long-term debt was $2,224 million. The gas differential assumption improved to a discount of $0.59 from $0.64, while the NGL realised price assumption eased to about $24.60 per barrel from about $24.75.

Environmental Credits Are Baked Into the Cash Flow Target

CNX Resources kept full-year guidance essentially unchanged even as softer realised gas prices pulled adjusted EBITDAX down sequentially to $290 million from $400 million, with derivative gains cushioning reported net income. About 81 per cent of 2026 gas volumes are hedged, smoothing cash flow but capping upside if prices rise, and the company's free cash flow guidance of roughly $525 million depends partly on about $80 million of expected environmental attribute and tax credit sales, income sources tied to policy as much as production.