CNX Resources Corporation (CNX): Business Model Canvas [Dec-2025 Updated]

You're digging into CNX Resources Corporation's strategy, trying to see past the daily stock noise to understand how this Appalachian Basin giant actually makes money and plans to keep delivering shareholder returns. Honestly, their business model is built on a foundation of massive, long-life gas reserves-think 8.54 Tcfe as of last year-paired with a sharp focus on ultra-low carbon intensity production. We're talking about a company projecting $575 million in free cash flow for 2025 while hedging 85% of its output; that's defintely disciplined execution. So, if you want the full, precise breakdown of their key partners, cost structure, and revenue streams that drive this performance, check out the detailed Business Model Canvas below.

CNX Resources Corporation (CNX) - Canvas Business Model: Key Partnerships

You're looking at the relationships CNX Resources Corporation relies on to move its Appalachian gas from the ground to the market, and how they manage the capital to keep the whole machine running. It's about infrastructure, sales channels, and the banks that back the balance sheet.

Midstream companies for gas processing and long-haul transport

CNX Resources Corporation relies on a network of midstream partners, though the company also owns and operates a significant portion of its own infrastructure. As of late 2025, CNX Resources owns or operates approximately 2,700 miles of natural gas gathering pipelines, which support moving gas from the wellhead to interstate pipelines or local sales points. The acquisition of Apex Energy II, LLC in early 2025 added further integrated gathering midstream system assets. CNX Resources Corporation's total sales volumes reached 550.8 net Bcfe in 2024.

The nature of these partnerships is often embedded in infrastructure ownership and capacity agreements. The company's strategy is to leverage its existing footprint, which includes various natural gas processing facilities, alongside third-party capacity.

Third-party marketers for natural gas sales and hedging

Moving the product requires firm sales agreements and hedging to manage price volatility. CNX Resources Corporation's production mix in 2024 was 90% Natural Gas and 10% Liquids. Management has a clear focus on hedging, which is critical given the price swings in the commodity markets. For instance, CNX Resources Corporation expects to generate approximately $640 million in total Free Cash Flow (FCF) for 2025, up from an earlier guidance of $575 million, partly due to asset sales, but the underlying operational cash flow is heavily influenced by these marketing and hedging strategies.

The company also generates revenue from environmental attributes. In the second quarter of 2025, CNX Resources Corporation recognized net sales of environmental attributes of approximately $19 million, associated with roughly 4.4 Bcf of Remediated Mine Gas (RMG). They continue to expect to capture 17-18 Bcf of RMG volumes for the full year 2025.

Technology partners for ultra-low carbon intensity development

CNX Resources Corporation positions itself as a premier, ultra-low carbon intensive natural gas developer, and this requires specific technology alliances. The CNX New Technologies business unit focuses on waste methane capture and automating lower-emission processes.

Key technology and environmental collaborations include:

• Partnered with Deep Well Services (DWS) to launch AutoSep Technologies, an automated flowback system.
• Collaboration with FORCE Environmental Solutions to use 100% compressed natural gas (CNG) water hauling tanker units.
• Member of the Appalachian Methane Initiative (AMI) alongside Ascent Resources, EQT Corporation, and Equitrans Midstream Corporation.
• Participating in a Pennsylvania-based geothermal pilot project that began in 2023.

Landowners and mineral rights holders in the Appalachian Basin

The foundation of CNX Resources Corporation's business is its acreage position in the Appalachian Basin, primarily across Pennsylvania, West Virginia, and Ohio. The company's strategy centers on its unique multi-formation acreage, often referred to as stacked pay.

The scale of the asset base as of late 2025, incorporating the Apex acquisition finalized in Q1 2025, is detailed below. Note that proved reserves as of December 31, 2024, stood at 8.54 Tcfe.

Financial institutions for debt and capital market activities

Managing the balance sheet involves continuous engagement with debt and equity capital markets. Following the Apex acquisition in Q1 2025, CNX Resources Corporation's net debt increased to approximately $2.7 billion. The company funded part of this with a tack-on issuance of $200 million in Senior Notes due in 2032, which closed in Q1 2025.

The company maintains significant financial flexibility through its debt structure. As of Q2 2025, the unsecured debt weighted-average maturity extended to 5.25 years. The TTM (Trailing Twelve Month) Leverage Ratio stood at 2.2x in Q2 2025, with a 2025E projection to improve to 1.9x. By Q3 2025, the TTM Leverage Ratio was 2.1x, with a 2025E target of 2.0x.

Capital deployment with financial partners also involves shareholder returns. In Q3 2025 alone, CNX Resources Corporation repurchased 6.1 million shares for a total cost of $182 million at an average price of $30.12 per share. Since the buyback program started in Q3 2020, the company has retired approximately 43% of its outstanding shares.

CNX Resources Corporation (CNX) - Canvas Business Model: Key Activities

You're looking at the core engine of CNX Resources Corporation, the day-to-day work that turns subsurface rock into cash flow. It's all about disciplined execution in the Appalachian Basin, focusing heavily on the Marcellus and Utica shale plays.

Exploration and development of Marcellus and Utica shale properties is central. The company integrated the Apex Energy assets, adding roughly 36,000 total net acres, which included about 8,600 acres of undeveloped Utica and 12,600 acres of undeveloped Marcellus leasehold, for a cash outlay of $505 million. Capital spending for 2025 remains guided between $450 million and $500 million. The development pace shows in the well results; for instance, in Q1 2025, CNX Resources completed drilling one deep Utica well with a lateral length of approximately 14,200 feet and four Marcellus SWPA wells averaging about 15,300 feet in lateral length.

The result of this development is the production of natural gas and natural gas liquids (NGLs). The latest full-year 2025 production guidance is updated to a range of 620 to 625 Bcfe. For context on recent output, Q1 2025 saw Shale Sales Volumes of 126.0 Bcf of gas and 12.2 Bcfe of NGLs sales. The liquids component is expected to be between 7% and 8% of the total 2025 production volumes.

CNX Resources also focuses on the operation of midstream assets. This includes managing infrastructure like 2,700 miles of gathering pipelines, which is key to getting the product to market efficiently.

A major activity is strategic hedging to protect production volumes. CNX Resources is known for its aggressive coverage; the updated guidance for 2025 shows that 84% of the natural gas production is hedged. This contrasts with earlier estimates that pointed to 85% coverage. The company primarily uses swaps or fixed price sales and index hedges for this protection.

Finally, the company actively pursues Remediated Mine Gas (RMG) project development and monetization. This involves converting waste mine gas into a low-carbon energy resource. CNX Resources continues to expect to capture approximately 17-18 Bcf of RMG volumes in 2025. The monetization effort yielded net sales of environmental attributes of approximately $19 million in Q2 2025 from about 4.4 Bcf of RMG. The expected Free Cash Flow (FCF) contribution from RMG for the full year 2025 is approximately $75 million at current environmental attribute market prices. The RMG is being blended, with a solution for data centers using 15% ultra-negative carbon intensity RMG mixed with 85% local shale gas to achieve net-zero electricity. Capturing all forecasted RMG emissions could reduce emissions by a total of 236 million metric tonnes of CO2e over a 20-year timeframe.

Here's a quick look at the operational metrics from recent reporting periods:

The company's execution on the ground involves specific drilling and completion achievements:

• Completed drilling one deep Utica well in Q1 2025.
• Completed drilling four Marcellus SWPA wells in Q1 2025.
• Set a monthly completions record with 504 pumping hours in Q1 2025.
• Turned-in-Line (TIL) 19 wells in Q1 2025.

The RMG activity also has a significant environmental scope:

• RMG capture is projected to reduce CO2e emissions equivalent to taking 2.1 million gasoline-powered vehicles off the road annually.
• RMG capture is projected to meet the energy use of over 1.1 million homes for 1 year.
• RMG is recognized under state Renewable Portfolio Standards (RPS) in Pennsylvania, Ohio, Colorado, and Illinois.

Finance: draft the Q3 2025 cash flow impact analysis from the updated asset sale guidance by Tuesday.

CNX Resources Corporation (CNX) - Canvas Business Model: Key Resources

You're looking at the core assets that power CNX Resources Corporation's business engine, the things they own or control that are essential to delivering their value proposition. Honestly, for an upstream player, this starts and ends with the ground beneath their feet and the know-how to extract it efficiently.

The resource base is substantial and proven. As of December 31, 2024, CNX held proved natural gas reserves totaling 8.54 Tcfe (trillion cubic feet equivalent). This reserve base is overwhelmingly natural gas, with 89.4% being natural gas at that date.

The geographic concentration of these reserves is a key strength. CNX Resources Corporation maintains an extensive, contiguous acreage position focused squarely in the Appalachian Basin, covering key areas in Pennsylvania (PA), West Virginia (WV), and Ohio (OH). This position allows for efficient development and infrastructure leverage. As of December 31, 2024, the total net acreage was reported at 3,930,341 acres, broken down across their operating segments. Specifically, the company owns rights to extract natural gas in PA, WV, and OH from approximately 526,000 net Marcellus Shale acres.

Here's a quick look at the hard numbers defining the resource base and financial output:

CNX Resources Corporation is also investing in its future through proprietary technology aimed at ultra-low carbon intensity operations. This effort is channeled through the CNX New Technologies business unit, launched in 2021, which focuses on waste methane capture and abatement. A concrete example of this is the joint venture announced in 2024 with Deep Well Services (DWS) to launch AutoSepSM Technologies, designed to capture methane vapors during flowback operations. Furthermore, the company possesses the expertise and existing infrastructure to produce what they view as the lowest carbon intensive, sustainably derived methane, which can serve as feedstock for hydrogen production facilities.

The human capital supporting these assets is critical, especially given the company's operational scope. This resource includes an experienced technical and operational workforce that enables key functions to be self-performed, such as midstream operations. This internal capability supports their extensive physical infrastructure:

• Operates approximately ~4,440 producing wells.
• Manages approximately ~2,600 miles of gas pipeline.
• Manages approximately ~1,400 miles of water pipeline.

The ability to generate significant cash flow is itself a key resource, providing capital for development and shareholder returns. Following the Q3 2025 update, the full-year 2025 FCF guidance was raised to approximately $640 million. This follows a streak of 23 consecutive quarters of positive FCF generation as of Q3 2025. Finance: draft 13-week cash view by Friday.

CNX Resources Corporation (CNX) - Canvas Business Model: Value Propositions

You're looking at the core promises CNX Resources Corporation makes to its customers and the market, grounded in its Appalachian Basin position as of late 2025. It's about volume, cost, and environmental differentiation.

Reliable, high-volume supply from a premier Appalachian Basin producer is central. CNX Resources is a significant player in the Marcellus and Utica plays, which together form one of the largest gas basins globally. For the full year 2025, CNX increased its production volume guidance to between 615 to 620 Bcfe. This follows a strong second quarter where production, excluding curtailments, lifted by 0.27 Bcfe/d year-over-year. The company's proved natural gas reserves as of December 31, 2024, stood at 8.54 trillion cubic feet equivalent.

The value proposition includes ultra-low carbon intensity natural gas production. CNX Resources is positioned in the Appalachian Basin, which has the lowest methane intensity among major U.S. natural gas producing regions. The company reports achieving a 98% reduction in methane emissions intensity since 2019, supported by deploying over 500,000 smart meters for monitoring. This focus on environmental performance is a key differentiator in the current energy landscape.

Consistent free cash flow generation for shareholder returns is a proven track record. CNX Resources reported $188 million in free cash flow (FCF) for Q2 2025, marking its 22nd consecutive quarter of positive FCF generation. For the nine months ending September 30, 2025, operating cash flow totaled $731.9 million. Since the start of its 7-year plan in 2020, cumulative FCF has reached approximately $2.5 billion. This consistent cash flow supports capital allocation, with the company prioritizing returning capital to shareholders. Since the buyback program began in 2020, CNX has retired approximately 40% of its outstanding shares.

The product mix is diversified: natural gas, NGLs, and environmental attributes (RMG). CNX is uniquely positioned to provide Remediated Mine Gas (RMG), which is blended with its low carbon intensity shale gas to offer a net-zero energy solution. In the second quarter of 2025, the company recognized net sales of environmental attributes of approximately $19 million, tied to about 4.4 Bcf of RMG. Full-year 2025 RMG volume is expected to be between 17-18 Bcf. The company's Q3 2025 total revenue was $583.8 million, with natural gas revenue at $361.3 million.

Finally, the value proposition rests on a long-term resource development with a 161-year regional legacy. This deep regional history underpins their substantial asset base in the Appalachian Basin. The company's operational efficiency is evident in its costs; Q2 2025 fully burdened cash costs, before DD&A, were $1.05 per Mcfe.

Here's a quick look at the key 2025 guidance metrics as of late 2025:

The company's capital allocation strategy heavily favors shareholder returns, as seen in the share count reduction. As of October 20, 2025, common shares outstanding were 134,832,658.

The value proposition is also supported by strong recent quarterly performance:

• Q3 2025 Revenue: $583.8 million.
• Q3 2025 Net Income: $202.1 million.
• Q3 2025 FCF Generation: $226 million (including $68 million from asset sales).
• Q3 2025 Cash Operating Margin: 62%.
• Q3 2025 Fully Burdened Cash Costs (before DD&A): $1.09 per Mcfe.

To be fair, the 2025 FCF guidance was slightly reduced from an earlier estimate due to softening Pennsylvania Tier 1 AEC (environmental attribute credit) market prices, though the final Q3 guidance was raised again. Finance: draft the Q4 2025 cash flow forecast incorporating the latest hedge book update by next Tuesday.

CNX Resources Corporation (CNX) - Canvas Business Model: Customer Relationships

You're looking at how CNX Resources Corporation manages its connections with the entities buying its Appalachian natural gas and those funding its operations. It's a mix of direct sales, market trading, and shareholder communication, all grounded in operational performance.

Dedicated account management for large-volume gas wholesalers

For the major buyers, the relationship is built on reliable supply, which CNX backs with significant proved reserves, standing at 8.54 trillion cubic feet equivalent ($\text{tcfe}$) as of December 31, 2024. To ensure price stability for both parties, CNX Resources Corporation employs a heavy hedging strategy. As of late 2025, the company had hedged almost 80% of its expected 2025 gas volumes, which provides a high degree of cash flow predictability for these large-volume counterparties. The company is actively increasing output to meet demand, revising its full-year 2025 production guidance upward to 620-625 Bcfe (Billion Cubic Feet Equivalent) in November 2025, up from an earlier forecast of 605-620 Bcfe. This operational momentum is key to maintaining these relationships.

Transactional relationships via physical sales and financial markets

The day-to-day sales are transactional, reflected in the reported revenue and realized pricing. For instance, CNX Resources Corporation posted Q3 2025 revenue of $423.00 million, which represented a 37.6% increase compared to the same quarter last year. The realized price for natural gas, which is what the market ultimately pays after accounting for hedges and basis differentials, is a critical metric here. Here's a look at some of the realized pricing data points:

This transactional relationship is also managed through financial market activities, where CNX uses hedging to lock in prices, as seen by the $2.51 per Mcf realized price in 1Q 2025, which was above the prevailing price for that quarter due to hedge settlements.

Investor relations focused on disciplined capital allocation and buybacks

Investor relationships center on the promise of long-term per-share value creation, driven by capital discipline. CNX Resources Corporation has a strong track record, delivering its 23rd consecutive quarter of positive Free Cash Flow (FCF) in Q3 2025, with that quarter's FCF totaling $226 million. This cash deployment is directly aimed at shareholders. Since the inception of its buyback program in 2020, the company has retired approximately 43% of its outstanding shares. The share count as of October 20, 2025, was 134,832,658 shares, a number that management actively works to reduce using FCF.

The focus is on being opportunistic and nimble with capital allocation, as evidenced by the updated 2025 total FCF guidance, which includes approximately $115 million in expected asset sales for the year.

Strategic engagement with new in-basin demand (e.g., data centers)

The company is positioning itself to serve growing industrial demand, such as that from data centers, which analysts predict will drive record liquefied gas demand. CNX Resources Corporation is meeting this by increasing production guidance for 2025 to 1.68-1.70 billion cubic feet of equivalent gas per day ($\text{bcfed}$). This increased production capacity, while maintaining capital spending at $450-$500 million for 2025, signals a commitment to capturing new, high-growth demand segments within the Appalachian Basin.

Community engagement to maintain social license to operate

Maintaining the social license to operate involves tangible local investment and radical transparency. The company treats its ESG metrics with the same rigor as financial data, updating its ESG Performance Scorecard quarterly. The commitment to local communities is quantified through direct giving and employee action:

• The CNX Foundation contributed $3.7 million through 144 initiatives in 2024.
• Employees volunteered over 3,500 hours in 2024.
• The Board approved a $1.5 million reduction in CEO pay in 2025 specifically to support the expansion of the CNX Foundation.

The company's philosophy is about being Tangible, Impactful, Local in its community support.

Finance: draft 13-week cash view by Friday.

CNX Resources Corporation (CNX) - Canvas Business Model: Channels

You're looking at how CNX Resources Corporation gets its product-primarily natural gas-out to the market as of late 2025. This involves a mix of physical delivery contracts, managing transportation logistics, and using financial tools to lock in prices.

Voluntary and compliance markets for environmental attributes represent a growing channel for CNX Resources Corporation, particularly from Coal Mine Methane (CMM) capture. For the first quarter of 2025, CNX Resources Corporation recognized net sales of environmental attributes totaling approximately $19 million, which was associated with about 4.3 Bcf of CMM. Management continued to expect that for the full year 2025, capturing approximately 17-18 Bcf of CMM volumes should result in approximately $75 million of Free Cash Flow (FCF) based on current environmental attribute market prices. This is up from the $41 million in sales recorded for the year ended December 31, 2023. Furthermore, updated 2025 guidance for total FCF includes approximately $115 million in expected asset sales, which can include environmental attributes.

The use of Commodity derivative markets for price risk management is a core part of securing revenue certainty. CNX Resources Corporation actively uses these instruments to manage exposure to volatile natural gas prices. As of the Q1 2025 hedge book, the company had 120.7 Bcf hedged for 2025, with an average price of $2.54/Mcf on NYMEX + Basis fully-covered volumes. By the Q3 2025 update, the percentage of natural gas production hedged for 2025 was down slightly to 84%. The financial impact of this channel was evident in Q3 2025, where CNX Resources Corporation reported a $131.7 million gain on commodity derivatives. The total volumes hedged for 2025, as of the Q1 2025 report, stood at 478.9 Bcf.

Here's a quick look at the volumes hedged across the next few years as of April 14, 2025:

Direct sales contracts to natural gas wholesalers and utilities are executed through physical commodity contracts. CNX Resources Corporation enters into these agreements that are satisfied by physical delivery, which often qualify for the normal purchases and normal sales exception and are thus not subject to derivative accounting. The company's total expected production volume for 2025 is guided to be between 615 Bcfe and 625 Bcfe, all of which must flow through a delivery channel.

For the physical movement of gas, Interstate and intrastate natural gas pipelines for delivery are essential. While specific pipeline capacity figures aren't detailed here, the company's operational plan requires moving its production, which was about 1.51 Bcfed in 2024, to market. The updated 2025 production guidance is about 1.68-1.70 billion cubic feet of gas equivalent per day (bcfed). The company also notes costs related to Unutilized firm transportation capacity obtained to ensure gas can flow uninterrupted as sales volumes increase.

CNX Resources Corporation is also described as a midstream company, meaning it has Midstream gathering and processing systems owned and operated by CNX, or at least has a significant midstream component to its business model. This internal capability helps manage the flow and initial processing of the gas before it enters the larger transmission networks, supporting the physical sales channel.

Finance: draft 13-week cash view by Friday.

CNX Resources Corporation (CNX) - Canvas Business Model: Customer Segments

You're looking at the core buyers CNX Resources Corporation serves, which is key to understanding where their $583.8 million in Q3 2025 revenue actually goes. Honestly, the structure is pretty straightforward, centered on getting their Appalachian Basin gas to market.

Natural gas wholesalers and marketers

This group is CNX Resources Corporation's bread and butter. The company explicitly states its principal activity is to produce pipeline quality natural gas for sale primarily to these wholesalers. In the third quarter of 2025, natural gas revenue alone hit $361.3 million out of total revenue of $583.8 million. For the first nine months of 2025, total revenue was $1.63 billion. Their total production volume for Q3 2025 was 161.3 Bcfe.

Large industrial and power generation end-users in the Appalachian region

While CNX Resources Corporation's gas feeds into the broader market, which ultimately serves power plants and large industrial users, the direct sales data quantified in the latest reports focuses on the wholesale channel. The company operates in Pennsylvania, West Virginia, and Ohio, where these end-users are located, but the specific revenue split to these direct industrial customers isn't broken out separately from the primary wholesale segment in the available Q3 2025 data.

Emerging high-growth, in-basin customers like data centers and AI infrastructure

There are no specific, quantified figures in the late 2025 disclosures detailing direct sales volumes or revenue attributed to data centers or AI infrastructure projects within the Appalachian region. The risk factors mention the impact of local and national economic conditions on customers generally.

Purchasers of environmental attributes and carbon offsets

This is a distinct, value-added customer base for CNX Resources Corporation, primarily through their Remediated Mine Gas (RMG) operations. In Q2 2025, they recognized net sales of environmental attributes totaling approximately $19 million associated with about 4.4 Bcf of RMG. For the full year 2025, they continued to expect to capture 17-18 Bcf of RMG volumes, which was projected to result in approximately $75 million of Free Cash Flow (FCF) based on Q1 2025 expectations.

Institutional and retail investors (as beneficiaries of FCF)

CNX Resources Corporation views its shareholders as critical beneficiaries of its business model, focusing heavily on per share value creation through disciplined capital allocation. The company generated $226 million in FCF in Q3 2025, marking the 23rd consecutive quarter of positive FCF. The updated 2025 full-year FCF guidance is approximately $640 million. The primary mechanism for returning value is share repurchases:

• In Q3 2025, CNX repurchased 6.1 million shares for $182 million at an average price of $30.12 per share.
• Since the buyback program began in Q3 2020, the company has retired approximately 43% of its outstanding shares.
• Shares outstanding as of October 20, 2025, were 134,832,658.

Here's a quick look at the financial performance metrics that underpin the value proposition to these investors:

The focus on FCF generation is defintely central to the shareholder segment, as evidenced by the updated 2025 FCF per share guidance of $4.75.

CNX Resources Corporation (CNX) - Canvas Business Model: Cost Structure

You're analyzing the cost side of CNX Resources Corporation's business model, and it's clear that managing capital deployment against operational efficiency is key. The cost structure is dominated by significant upfront investment, balanced by a drive for industry-leading low variable costs.

The foundation of CNX Resources Corporation's spending is rooted in its upstream activities, which carry high fixed costs. These costs are inherently tied to the long-term nature of drilling, well completion, and the necessary midstream infrastructure to get product to market. While the company has shown impressive efficiency gains, the initial capital outlay for developing the Marcellus and Utica shale acreage remains substantial.

For the 2025 fiscal year, CNX Resources Corporation reaffirmed its commitment to capital discipline while maintaining development activity. The projected total Capital Expenditures (CapEx) for 2025 was initially set between $450 million and $500 million. By the third quarter update, the guidance range was slightly narrowed to between $475 million and $500 million. This spending is heavily weighted toward the core development work.

Here's a breakdown of the planned capital allocation for 2025, showing where those fixed costs are directed:

To counter these large fixed investments, CNX Resources Corporation focuses intensely on keeping the day-to-day costs low. The company boasts low variable operating costs, a key differentiator. For the second quarter of 2025, the reported fully burdened cash costs were $1.05 per Mcfe (before depreciation and amortization). This metric improved slightly from the first quarter of 2025's $1.11 per Mcfe. By the third quarter of 2025, this figure was reported at $1.09 per Mcfe.

Debt servicing is another component of the cost structure, though CNX Resources Corporation has been actively managing its balance sheet. The company's focus on generating Free Cash Flow (FCF) is explicitly aimed at improving its leverage. The Trailing Twelve Month (TTM) leverage ratio stood at 2.1x as of the third quarter of 2025, with management projecting this to improve to 2.0x by year-end 2025. This compares to an estimated leverage ratio of 1.8x projected at the end of Q1 2025. The Interest Expense on Debt for the three months ending September 2025 was reported as $42.96 million, or $-43 Million in some reports.

Finally, the cost of hedging and market volatility introduces a non-operational cost/benefit factor. The impact of commodity derivative instruments can be significant and volatile. For instance, in the first quarter of 2025, CNX Resources Corporation realized a $110 million loss on settled commodity derivatives. That same quarter also saw a massive unrealized loss of $(528.2 million), largely due to market volatility. To provide some offset, the company continues to realize revenue from environmental attributes, with $68 million from asset sales included in FCF for Q3 2025.

You should keep an eye on the D&C efficiency, as that directly impacts the fixed CapEx spend. Finance: draft 13-week cash view by Friday.

CNX Resources Corporation (CNX) - Canvas Business Model: Revenue Streams

You're looking at how CNX Resources Corporation actually brings in the cash, which is the core of any business model. For CNX, it's heavily tied to the commodity cycle, but they've layered in a few other ways to pull in revenue from their Appalachian Basin assets.

The primary revenue stream is definitely the physical product: sales of pipeline quality natural gas and Natural Gas Liquids (NGLs). This is where the bulk of the top line comes from, directly reflecting market prices for those commodities. You saw this clearly in the third quarter of 2025, where the company reported a total revenue and other operating income of $583.8 million.

Let's break down that Q3 2025 performance, because it shows the different levers they pull:

As you can see from the table, the core natural gas sales accounted for $361.3 million of that quarterly revenue. That's the engine. But look at the next line: the gains on commodity derivative instruments were $131.7 million for the quarter. These hedges (commodity derivative instruments) are a critical part of their realized revenue, smoothing out the volatility you'd otherwise see from fluctuating gas prices.

CNX Resources Corporation also monetizes its operations through other avenues, which are becoming increasingly important to the overall story:

• Revenue from midstream services (gathering, processing) to third parties.
• Monetization of environmental attributes, specifically Remediated Mine Gas (RMG).

That environmental attribute stream is worth noting. For Q3 2025, CNX recognized net sales of environmental attributes of approximately $15 million, which came from about 4.4 Bcf of RMG. They are definitely leaning into this as a distinct revenue source, and they expect to capture around 17-18 Bcf of RMG volumes for the full year 2025, potentially resulting in about $65 million of Free Cash Flow from RMG at current market prices.

To give you a slightly longer view, for the first nine months of 2025, CNX Resources brought in total revenue of $1.63 billion, generating operating cash flow of $731.9 million. The bottom line for Q3 2025 was a net income of $202.1 million, translating to a Diluted EPS of $1.21. The company also posted a Free Cash Flow (FCF) of $226 million in that same quarter.

So, you have the physical sale of product, the financial engineering via derivatives to lock in prices, and the emerging revenue from environmental credits. Finance: draft the Q4 2025 revenue projection incorporating a lower derivative gain assumption by next Tuesday.