CNX Resources Corporation 2026 Q3 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Third-quarter gas differentials were wider than expected, and about two-thirds of CNX's portfolio has in-basin exposure.
- CNX curtailed less than a B of volumes during the quarter, including during periods when in-basin gas prices dropped below $1.
- Diesel and steel costs increased, but their overall impact on the capital program was less than 1% of capital.
- CNX continued share repurchases, which management described as extremely attractive.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Transcript
Preview the first fifteen paragraphs, organized by speaker.
Good day, and welcome to the CNX Resources third quarter 2026 Q&A conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Tyler Lewis.
Please go ahead. Thank you, and good morning, everybody.
Welcome to CNX's third quarter Q&A conference call. Today, we will be answering questions related to our results. This morning, we posted to our investor relations website an updated slide presentation and detailed third quarter earnings release data, such as quarterly E&P data, financial statements, and non-GAAP reconciliations, which can be found in a document titled 3Q 2026 Earnings Results and Supplemental Information of CNX Resources. Also, we posted to our investor relations website our prepared remarks for the quarter, which we hope everyone had a chance to read before the call, as the call today will be used exclusively for Q&A. With me today for Q&A are Alan Shepard, our President and Chief Executive Officer, Ravi Srivastava, our Chief Financial Officer, and Navneet Behl, our Chief Operating Officer.
Please note that the company's remarks made during this call, including answers to questions, include forward-looking statements which are subject to various risks and uncertainties. These statements are not guarantees of future performance and our actual results may differ materially as a result of many factors. A discussion of risks and uncertainties related to those factors in CNX's business is contained in its filings with the Securities and Exchange Commission and in the release issued today. With that, thank you for joining us this morning, and operator, can you please open the call up for Q&A at this time?
Yes. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star, then two. At this time, we will pause momentarily to assemble the roster. The first question comes from Gabe Daoud with Truist.
Thanks, operator. Morning, guys. Thanks for taking my questions. Was hoping we could maybe just start with the macro backdrop, and you noted in the prepared remarks you will certainly remain flexible and responsive to the current environment. Curious maybe how that would translate into your thoughts on 2027, just given where gas prices are.
Yeah. Hey, Gabe. Thanks for the question. Where we sit right now, we are pretty much on the 5-year average for storage levels. We will be close to four Tcf going into winter. Right now, we are not giving forward guidance, but right now it looks like we will be in maintenance production mode, right? Unless we see something that incentivizes producers to bring on more gas, we will be staying steady state. Obviously, if it sort of degrades from here, we will make adjustments as necessary.
Okay. Thanks, Alan. So maintenance for now, not below maintenance given prices on the screen currently. You feel good with still maintenance?
Yeah. We are pretty hedged going into 2027. So we are in a little bit different shape than most folks. Right now, we would still be in the maintenance mode mindset.
Right. Okay. Great. That's helpful. My follow-up will be another, I guess, higher level question. A big merger in-basin this week was announced, as I'm sure you're all aware. We'd love to hear your thoughts maybe on the transaction and M&A in Appalachia more generally.
Yeah. We're not going to comment on other folks' M&A. Obviously, it's a commodity industry, and you see consolidation in those sorts of industries. We'll see what the combined company does in terms of production levels and things like that. Not much color to provide from our side on it.
Okay. CNX's appetite for M&A at this stage?
Yeah. It's one of the lanes of capital allocation, right? As we always talk about, we're open to things that are accretive to the long-term free cash flow per share value. But it's just one of the things we review. Right now, share repurchases are sort of the bar we test all of that against, and they continue to be extremely attractive as you saw this quarter.
Yep. For sure. Okay. Thanks, Alan.
Thanks, everyone. Thank you. The next question comes from Leo Mariani with Roth.
FULL TRANSCRIPT
Continue the full translated transcript in StockNow.
Log in to unlock every statement, the English original, and speaker-by-speaker history.
Log in for the full transcriptCall participants
9 people spoke on this call — only 2 are shown here.
PARTICIPANT LIST
View participant details in StockNow.
Log in to see executives and analysts, their roles, and complete speaking history.
Log in to view all participantsKeep exploring