The Home Stretch: CNX Raises 2026 Outlook as Seven-Year Plan Enters Its Final Quarter

CNX Resources Corporation reported another quarter of consistent execution in the third quarter of 2026, generating $125 million in free cash flow and marking its 27th consecutive quarter of positive free cash flow generation.

Since the inception of its seven-year plan in 2020, CNX’s differentiated business model has produced approximately $3.3 billion in cumulative free cash flow. With one quarter remaining in that plan, the company raised its full-year free cash flow outlook to approximately $550 million.

During the quarter, CNX repurchased approximately 5.2 million shares for $180 million at an average price of $34.35 per share. After quarter-end, the company repurchased another 1.1 million shares for $37 million at an average price of $32.85 per share. Since its peak share count in the third quarter of 2020, CNX has repurchased approximately 111 million shares for $2.3 billion at an average price of $21.08 per share. After accounting for shares issued through convertible note settlements and equity compensation, shares outstanding have declined by approximately 36 percent.

On the balance sheet side, net debt increased by approximately $60 million during the quarter as CNX directed capital toward share repurchases. Even with that increase, the company has reduced net debt by approximately $133 million since the beginning of the year. CNX also reported approximately $1.7 billion in available liquidity under its credit facilities, providing flexibility as it weighs future buybacks, debt reduction, and investment opportunities.

Through the summer months, the team drilled two Utica Shale wells in Central Pennsylvania, frac’d 12 Marcellus Shale wells in Southwestern Pennsylvania, and turned in line 12 Southwestern Pennsylvania Marcellus wells. Production totaled 156.3 billion cubic feet equivalent (Bcfe), compared with 151.5 Bcfe in the second quarter. CNX continued to execute its maintenance-of-production program of approximately 1.5 rigs and a partial-year fracturing crew, while retaining flexibility to adjust activity if natural gas prices change materially.

The company recognized approximately $15 million in net sales of environmental attributes associated with approximately 4.5 billion cubic feet (Bcf) of Remediated Mine Gas (RMG). That performance remained consistent with its full-year expectation to capture approximately 17 Bcf of RMG and generate approximately $50 million in Pennsylvania Tier 1 Alternative Energy Credit (AEC) net sales at current market prices.

During the quarter, CNX also sold Section 45Z tax credits to a third party for approximately $30 million in net cash proceeds. The company continues to anticipate annual 45Z tax credit sales of approximately $40 million beginning in 2027 and expects the U.S. Treasury Department to issue a final implementation rule by year-end or shortly thereafter.

Looking ahead, CNX raised and narrowed its 2026 production guidance to 612.5–617.5 Bcfe, compared with its previous range of 605–620 Bcfe. The company continues to expect 34 wells to turn in line during the year, consisting of 27 Marcellus wells and seven deep Utica wells. Updated base capital expenditure guidance is $555 million to $570 million, plus a separate $16 million payment for Utica Shale rights beneath the legacy Apex Energy footprint.

Using October 14 forward-market pricing, including a natural gas price of $3.54 per million British thermal units (MMBtu) on the New York Mercantile Exchange (NYMEX), CNX increased its full-year free cash flow guidance from approximately $525 million to approximately $550 million, driven primarily by higher expected production volumes and natural gas liquids prices. Combined with share repurchases, that improvement lifted expected free cash flow per share from $3.55 to $3.85. The full-year free cash flow outlook includes approximately $45 million in expected asset sales and the $30 million in 45Z tax credit proceeds.

CNX also announced the next evolution of its Radical Transparency program, enhancing its environmental monitoring and disclosure collaboration with Pennsylvania Governor Josh Shapiro and the Pennsylvania Department of Environmental Protection (DEP). Building on existing air, water, and drilling chemical disclosures, the expanded program now includes continuous ambient gamma radiation monitoring at or near unconventional well pads and certain produced water facilities, covering development from drilling through production.

An independent third party is collecting the radiation data and providing it to CNX and DEP simultaneously, with the information also shared publicly in real time. CNX is also now disclosing waste transportation radiation survey data through monthly updates.

Radical Transparency monitoring continues to find no evidence of impacts from gas development operations that would be harmful to human health. As the program nears its third anniversary, CNX continues to encourage industry participation, scientific engagement, and regulations grounded in measured data.

Taken together, the third quarter reflected a familiar CNX formula: consistent free cash flow generation, disciplined operations, opportunistic share repurchases, and continued development of lower-carbon products. As its seven-year plan enters its final quarter, CNX is pairing a higher full-year cash flow outlook with an expanded commitment to transparent operations in the communities where it works.

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