CNX

CNX Resources is a low-cost Appalachian natural gas producer operating two segments, Shale and Coalbed Methane, selling pipeline-quality gas to wholesalers. FY2025 was a strong up-cycle year: revenue rose 76.8% to $2.24B and net income jumped to $633M (diluted EPS $3.98), translating to a cheap 8.2x P/E. The company generated $1.03B of operating cash flow (+26.1%) against $495M of capex, and returned cash aggressively — $524M of buybacks (+184.2%) cut the share count 4.3%. CNX pays no dividend, concentrating returns in repurchases.

The critical context, visible in the segment detail, is volatility. Reported results are heavily swung by mark-to-market gains and losses on commodity-derivative instruments — a $96.7M gain in FY2025 versus a -$172.4M loss in FY2024 — and the multi-year history is whiplash: net income ran from -$499M (FY2021) to +$1.72B (FY2023) to -$90.5M (FY2024) to +$633M (FY2025). So a single year's EPS and the 8.2x multiple can be misleading; this is a commodity business whose profitability tracks natural gas prices and hedging marks. A differentiated angle is the ~$77.8M of revenue from sales of environmental attributes (capturing/abating methane for carbon-credit-like value), an optionality not all gas peers have.