CNX Resources: A Strategic Acquisition for Stacked Pay Development

CNX Resources Corporation (NYSE: CNX) has recently closed its acquisition of Apex Energy II, a strategic move that aligns with the company's long-term growth strategy and commitment to low-carbon intensive natural gas production. The acquisition, valued at approximately $505 million, provides CNX with a significant strategic footprint for future development and leverages existing infrastructure for stacked pay development of the Marcellus and Utica shale plays.

The acquisition adds approximately 36,000 total net acres (94% held) in Westmoreland County, Pennsylvania, including 8,600 acres of undeveloped Utica and 12,600 acres of undeveloped Marcellus. This expansion enhances CNX's existing stacked Marcellus and Utica undeveloped leasehold in the CPA region, providing a substantial strategic footprint for future development. CNX president and CEO Nick Deiuliis stated, "This transaction represents a rare opportunity to acquire a highly complementary asset adjacent to our existing operations. It underscores our confidence in the stacked pay development opportunities that have been unlocked from pioneering the deep Utica in this region."



The acquisition also provides an existing infrastructure footprint that can be leveraged for future stacked pay development, aligning with CNX's low-cost strategy. The acquired assets have expected 2025 operating costs of approximately $0.16/Mcfe, which is in line with CNX's focus on responsible resource development and innovation. Additionally, the acquisition is expected to be immediately accretive to CNX's key metric of free cash flow per share, allowing the company to maintain its strong balance sheet and preserve significant capital allocation flexibility moving forward.

CNX's acquisition of Apex Energy's natural gas upstream and associated midstream business further strengthens the company's position as a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company. The acquisition aligns with CNX's commitment to responsible resource development and innovation, as well as its focus on low-carbon intensive natural gas production. By strategically expanding its stacked Marcellus and Utica acreage and leveraging existing infrastructure, CNX is well-positioned to unlock long-term per share value for shareholders, employees, and the communities where it operates.

In conclusion, CNX Resources' acquisition of Apex Energy is a strategic move that aligns with the company's long-term growth strategy and commitment to low-carbon intensive natural gas production. The acquisition provides a significant strategic footprint for future development, leverages existing infrastructure, and enhances CNX's financial outlook. As CNX continues to focus on responsible resource development and innovation, investors can expect the company to deliver strong performance and growth across its core region.