CNX Reports Second Quarter Results and Provides Updated 2019 and 2020 Guidance

PITTSBURGH, July 30, 2019 /PRNewswire/ -- CNX Resources Corporation (NYSE: CNX) ("CNX" or "the company") reports the following financial results, which are in accordance with generally accepted accounting principles (GAAP) in the U.S.:

During the second quarter of 2019:

    --  The company reported net income attributable to CNX shareholders of $162
        million, or earnings of $0.84 per diluted share, compared to net income
        attributable to CNX shareholders of $42 million, or earnings of $0.19
        per diluted share, in the second quarter of 2018. Included in the 2019
        earnings was an unrealized gain on commodity derivative instruments of
        $211 million and a loss of $20 million due to a non-cash charge for
        additional stock-based compensation expense related to a change in
        control agreement of certain employees and CNX officers.
    --  Included in the 2018 earnings was an unrealized gain on commodity
        derivative instruments of $9 million.
    --  The company reported total production costs of $2.07 per Mcfe, including
        $0.89 per Mcfe of Depreciation, Depletion, and Amortization (DD&A),
        compared to $2.00 per Mcfe, including $0.91 per Mcfe of DD&A, in the
        year-earlier quarter.
    --  On a consolidated basis, the company reported net income of $193 million
        for the 2019 second quarter, compared to net income of $61 million in
        the second quarter of 2018.
    --  Capital expenditures were $329 million, compared to $264 million spent
        in the year-earlier quarter.
    --  The company had total weighted-average diluted shares of common stock
        outstanding of 192,780,732 compared to 218,929,960 shares in the second
        quarter of 2018.

Second Quarter Highlights

CNX's management uses non-GAAP financial measures for planning, forecasting and evaluating business and financial performance, and believes that they are useful for investors in analyzing the company. Stand-alone results include both CNX's Exploration & Production (E&P) and Unallocated segments (but not the Midstream segment) plus distributions CNX receives from CNX Midstream Partners LP ("CNXM"). CNX believes that providing Stand-alone results provides investors with more transparency and a better ability to compare CNX's financial results to those of our peer group. The term "consolidated" includes 100% of the results of CNX, CNX Gathering LLC, and CNXM on a consolidated basis.

    --  Sales volumes of 135 Bcfe, or an increase of 10% from the 123 Bcfe sold
        in the second quarter of 2018.
    --  Fully burdened cash margin of $0.93 per Mcfe, or a decrease of 23% from
        the $1.21 per Mcfe in the second quarter of 2018.
    --  Bought back 8,808,433 additional shares, or a 19% reduction in total
        share count since the start of our program, which as of July 15, 2019,
        results in 187,563,388 shares outstanding.

"Despite weaker prices, CNX's operational execution drove strong cash margins and well performance, which resulted in modest volume growth in the quarter, when compared to the first quarter of 2019," commented Nicholas J. DeIuliis, president and CEO. "We hit a major milestone in our deep dry Utica program this quarter with the Majorsville 6 pad well costs averaging $12.1 million per well, which is below the targeted well costs for Southwest Pennsylvania Utica. During the quarter, we set a Pennsylvania record for drilling the longest Marcellus lateral at 19,609 feet. Opportunistic share buybacks continued at discounted prices relative to our internal NAV per share views, with a 19% reduction in total share count since the start of our program. Our cash costs, robust hedge book, and asset base continue to drive strong risk-adjusted rates of return, and our focus remains on appropriately allocating capital across our operations, debt reduction, and/or additional share repurchases."

Mr. DeIuliis continued, "CNX is one of the most hedged producers in 2020 with 86% of our gas volumes hedged including NYMEX hedges at $2.94 per Mcf. The hedge program, coupled with the 2020 development plan and capital program, is positioning the company to generate approximately $135 million in free cash flow (FCF) in 2020 at forward strip prices on open volumes, while growing production approximately 12%, when compared to 2019. Based on this activity we expect that 2021 will be FCF positive and have flat production."

The following table represents certain non-GAAP financial measures used by the company:(1)


                                                             Quarter                         Quarter                                             Quarter                      Quarter


                                                              Ended                           Ended                                               Ended                        Ended


                                                          June 30, 2019                   June 30, 2018                                       June 30, 2019                June 30, 2018




            
              (Dollars in millions, except per        
           
         Stand-alone                              % Increase/           
            
           Consolidated                          % Increase/
    share data)                                                                                               (Decrease)                                                                   (Decrease)




            Adjusted Net Income                                           $
       12                                                   $
       62                                        (80.6)                       $
      57   $
      90      (36.7)
                                                                                                                                                                                       %                                               %



            Total Shares Outstanding (in millions)(2)            187.6                                 213.1                                          (12.0)
                                                                                                                                                          %                                                                     
     %



            Adjusted Net Income per Outstanding Share(2)                $
       0.06                                                 $
       0.29                                        (79.3)
                                                                                                                                                                                       %                                            
      %



            Adjusted EBITDAX                                             $
       175                                                  $
       196                                        (10.7)                      $
      222  $
      231       (3.9)
                                                                                                                                                                                       %                                               %



            Adjusted EBITDAX per Outstanding Share(2)                   $
       0.93                                                 $
       0.92                                           1.1                      $
      1.18 $
      1.08         9.3
                                                                                                                                                                                       %                                               %



            Capital Expenditures(3)                                      $
       226                                                  $
       239                                         (5.4)
                                                                                                                                                                                       %                                            
      %



                            (1)The Non-GAAP financial
                             measures in the table above are
                             defined and reconciled to GAAP
                             net income, under the caption
                             "Non-GAAP Financial Measures"
                             below.


                            (2)For the quarter ended June
                             30, 2019, total shares
                             outstanding of 187,563,388
                             (Non-GAAP) are as of July 15,
                             2019. For the quarter ended
                             June 30, 2018, total shares
                             outstanding of 213,059,169
                             (Non-GAAP) are as of July 17,
                             2018.


                            (3)Capital expenditures exclude
                             $103.4 million and $24.6
                             million of total capital
                             investment net to CNXM in the
                             second quarter of 2019 and
                             2018, respectively, as reported
                             in CNXM Second Quarter Results.

The following table highlights operating cash margins and fully burdened cash margins:


                                 Quarter          Quarter


                                   Ended            Ended



     (Per Mcfe)                 June 30,         June 30,
                                     2019              2018



      Average Sales Price -E&P            $
     2.63                $
     2.87


      Total Production Cash
       Costs(1)                      1.18                   1.09



      Operating Cash Margin               $
     1.45                $
     1.78


      Operating Cash Margin (%)       55                     62
                                        %                     %




      Total Fully Burdened Cash
       Costs(2)                           $
     1.70                $
     1.66



      Fully Burdened Cash Margin          $
     0.93                $
     1.21


      Fully Burdened Cash Margin       35                     42
       (%)                             %                     %



                            (1)See the "Price and Cost Data Per
                             Mcfe" table below for
                             reconciliation to total Production
                             Costs.


                            (2)Fully burdened cash costs
                             includes production cash costs,
                             selling, general and
                             administrative (SG&A) cash costs,
                             other operating cash expense,
                             other cash (income) expense, and
                             interest expense.

Operations:

During the quarter, we used up to five horizontal rigs and drilled 30 wells. Many of the rigs are being utilized in batch drilling on pads that in some cases have stacked pay development. The company currently has three rigs in operation, which are under contract through the end of 2019, and CNX expects to run approximately two rigs and one frac crew in 2020. During the quarter, the company set a Pennsylvania state record for longest lateral by drilling the RHL71B Marcellus Shale well 19,609 feet. The average lateral length for this 6-well pad was 15,744 feet with estimated drilling and completion (D&C) capital of approximately $800 per foot.

During the quarter, the company utilized two frac crews to complete nine wells, which included: five Marcellus Shale wells in Greene County, Pennsylvania; and four Utica Shale wells in Marshall County, West Virginia. CNX has been a first mover in the basin by entering into a long-term contract with Evolution, an all-electric frac crew. The Evolution crew started operations in the second quarter and completed seven wells, which provided fuel savings of approximately $180,000 per well.

CNX turned-in-line four wells in the second quarter, which consisted of four Marcellus Shale wells in Greene County, Pennsylvania.

CNX's natural gas and liquids production in the quarter came from the following categories:


                                       Quarter  Quarter                                 Quarter


                                         Ended    Ended                                  Ended


                                       June 30, June 30,                   % Increase/ March 31,           % Increase/
                                           2019      2018         (Decrease)                  2019 (Decrease)




     
                GAS



     Marcellus Sales Volumes (Bcf)        84.3              58.0                             45.3                        81.6     3.3
                                                                                               %                                 %



     Utica Sales Volumes (Bcf)            28.1              40.4                           (30.4)                       30.6   (8.2)
                                                                                               %                                 %



     CBM Sales Volumes (Bcf)              13.9              14.8                            (6.1)                       13.7     1.5
                                                                                               %                                 %



     Other Sales Volumes (Bcf)(1)          0.1               0.4                           (75.0)
                                                                                               %                                       %





     
                LIQUIDS(2)



     NGLs Sales Volumes (Bcfe)             7.9               8.4                            (6.0)                        6.7    17.9
                                                                                               %                                 %



     Oil Sales Volumes (Bcfe)                               0.1                          (100.0)
                                                                                               %                                       %



     Condensate Sales Volumes (Bcfe)       0.2               0.5                           (60.0)                        0.4  (50.0)
                                                                                               %                                 %





     
                TOTAL (Bcfe)           134.5             122.6                              9.7                       133.0     1.1
                                                                                               %                                 %





     Average Daily Production (MMcfe)  1,477.6           1,346.8                                                1,478.0



                            (1)Other Sales Volumes:
                             primarily related to shallow
                             oil and gas production that was
                             sold at the end of the first
                             quarter of 2018.


                            (2)NGLs, Oil and Condensate are
                             converted to Mcfe at the rate
                             of one barrel equals six Mcf
                             based upon the approximate
                             relative energy content of oil
                             and natural gas, which is not
                             indicative of the relationship
                             of oil, NGLs, condensate, and
                             natural gas prices.


                                                                         
     
     PRICE AND COST DATA PER MCFE - Quarter-to-Quarter Comparison:




                                                                                                                                              Quarter               Quarter             Quarter


                                                                                                                                               Ended                 Ended               Ended





              (Per Mcfe)                                                                                                                  June 30, 2019         June 30, 2018      March 31, 2019




              Average Sales Price - Gas                                                                                                                 $
     2.51                                   $
     2.55        $
       3.21



              Average Gain (Loss) on Commodity Derivative Instruments -                                                                                 $
     0.08                                   $
     0.15      $
       (0.33)
    Cash Settlement- Gas



              Average Sales Price - Oil*                                                                                                                $
     8.42                                   $
     9.72        $
       7.26



              Average Sales Price - NGLs*                                                                                                               $
     3.06                                   $
     4.73        $
       4.46



              Average Sales Price - Condensate*                                                                                                         $
     7.56                                   $
     9.47        $
       6.50





              Average Sales Price - Total Company                                                                                                       $
     2.63                                   $
     2.87        $
       2.97





              Lease Operating Expense (LOE)                                                                                                             $
     0.15                                   $
     0.21        $
       0.14



              Production, Ad Valorem, and Other Fees                                                                                               0.05                       0.06                        0.05



              Transportation, Gathering and Compression                                                                                            0.98                       0.82                        0.92



              Depreciation, Depletion and Amortization (DD&A)                                                                                      0.89                       0.91                        0.88




              Total Production Costs                                                                                                                    $
     2.07                                   $
     2.00        $
       1.99





              Total Production Cash Costs, before DD&A                                                                                                  $
     1.18                                   $
     1.09        $
       1.11




              Cash Margin, before DD&A                                                                                                                  $
     1.45                                   $
     1.78        $
       1.86



                            *NGLs, Oil, and Condensate are
                             converted to Mcfe at the rate of
                             one barrel equals six Mcf based
                             upon the approximate relative
                             energy content of oil and natural
                             gas, which is not indicative of
                             the relationship of oil, NGLs,
                             condensate, and natural gas
                             prices.


               Note: "Total Production Costs"
                excludes Selling, General, and
                Administration and Other Operating
                Expenses.

In the second quarter of 2019, total production costs were higher, compared to the year-earlier quarter, mainly due to increased transportation, gathering, and compression costs, offset in part by improvements to LOE, production taxes, and DD&A. The primary driver to the increased transportation, gathering, and compression costs was due to higher CNXM fees and firm transportation nominations related to new contracts. The improvement to LOE was driven by decreased water disposal costs.

Marketing:

For the second quarter of 2019, CNX's average sales price for natural gas, natural gas liquids (NGLs), oil, and condensate was $2.63 per Mcfe. The average realized price for all liquids for the second quarter of 2019 was $19.14 per barrel.

CNX's weighted average differential from NYMEX in the second quarter of 2019 was negative $0.31 per MMBtu. CNX's average sales price for natural gas before hedging decreased 21.8% to $2.51 per Mcf compared with the average sales price of $3.21 per Mcf in the first quarter of 2019. This decrease results primarily from a lower Henry Hub price reflecting current general market conditions coupled with a wider differential. Including the impact of cash settlements from hedging, CNX's average sales price for natural gas was $0.11 per Mcf, or 4.1%, lower than last year's second quarter.

Total hedged natural gas production in the 2019 third quarter is 103.9 Bcf. The annual gas hedge position is shown in the table below:


                                     2019   2020



     Volumes Hedged (Bcf), as
      of 7/8/19               
     396.6*    470.5



                            *Includes actual settlements
                             of 205.8 Bcf.

CNX's hedged gas volumes include a combination of NYMEX financial hedges, index (NYMEX and basis) financial hedges, and physical fixed price sales. In addition, to protect the NYMEX hedge volumes from basis exposure, CNX enters into basis-only financial hedges and physical sales with fixed basis at certain sales points. CNX's gas hedge position through 2023 as of July 8, 2019 is shown in the table below:


                                                               Q3 2019         2019       2020          2021 2022          2023




     
                NYMEX Only Hedges



     Volumes (Bcf)                                               99.8              379.7              459.1         395.1      265.9         118.9



     Average Prices ($/Mcf)                                           $
     2.98                 $
     3.01            $
     2.94             $
     2.92       $
     3.00 $
     2.87



     
                Physical Fixed Price Sales and Index Hedges



     Volumes (Bcf)                                                4.1               16.9               11.4          21.1       13.5          27.4



     Average Prices ($/Mcf)                                           $
     2.51                 $
     2.62            $
     2.42             $
     2.49       $
     2.59 $
     2.11



     
                Total Volumes Hedged (Bcf)                    103.9              396.6              470.5         416.2      279.4         146.3








     
                NYMEX + Basis (fully-covered volumes)(1)



     Volumes (Bcf)                                              102.0              380.9              444.6         394.0      243.9         136.9



     Average Prices ($/Mcf)                                           $
     2.62                 $
     2.67            $
     2.49             $
     2.37       $
     2.37 $
     2.24



     
                NYMEX Only Hedges Exposed to Basis



     Volumes (Bcf)                                                1.9               15.7               25.9          22.2       35.5           9.4



     Average Prices ($/Mcf)                                           $
     2.98                 $
     3.01            $
     2.94             $
     2.92       $
     3.00 $
     2.87




     
                Total Volumes Hedged (Bcf)                    103.9              396.6              470.5         416.2      279.4         146.3



                            (1)Includes physical sales with
                             fixed basis in Q3 2019, 2019,
                             2020, 2021, 2022, and 2023 of
                             33.8 Bcf, 129.5 Bcf, 77.4 Bcf,
                             74.3 Bcf, 33.8 Bcf, and 3.4
                             Bcf, respectively.

During the second quarter of 2019, CNX added additional NYMEX natural gas hedges of 2.6 Bcf and 53.6 Bcf for 2019 and 2024, respectively. To help mitigate basis exposure on NYMEX hedges, in the second quarter CNX added 3.4 Bcf, 20.3 Bcf, 23.6 Bcf, 24.0 Bcf, and 38.1 Bcf, of basis hedges for 2020, 2021, 2022, 2023, and 2024, respectively.

Finance:

At June 30, 2019, CNX's stand-alone net debt to trailing-twelve-months (TTM) adjusted Stand-alone EBITDAX plus distributions was 2.3x. On a consolidated basis, CNX's net debt to TTM adjusted EBITDAX was 2.5x. During the six months ended June 30, 2019, CNX completed a private offering of $500 million of 7.25% senior notes due in March 2027, of which $400 million was used to purchase its outstanding 5.875% senior notes due in April 2022. The company is evaluating additional options to refinance and extend the maturities of the 2022 senior notes.

At June 30, 2019, CNX's credit facility had $630 million of borrowings outstanding and $199 million of letters of credit outstanding, leaving $1,271 million of unused capacity. In addition, CNX holds 21.7 million CNXM limited partnership units, with a current market value of approximately $315 million as of July 18, 2019, a 2% General Partner interest, and incentive distribution rights.

Since the October 2017 inception of the current repurchase program and as of July 15, 2019, CNX has repurchased a total of approximately 44.2 million shares for approximately $595 million life-to-date, resulting in 187,563,388 shares outstanding, which is an approximately 19% reduction to total shares outstanding. The company has approximately $155 million remaining on its current $750 million share repurchase program, which is not subject to an expiration date.

Guidance and Capital Update:

CNX expects to generate approximately $135 million in FCF in 2020 based on the projected operational and financial results below.

CNX updates 2019 production volumes to 510-530 Bcfe, compared to the previous guidance of 495-515 Bcfe. CNX updates 2020 production volumes to 570-595 Bcfe, which equates to an approximately 12% annual increase, based on the midpoints of guidance.



     
                Adjusted EBITDAX(1)         Previous Updated  Updated


                                                 2019E   2019E    2020E



     
                ($ in millions)                Low     High     Low     High    Low     High




     Stand-Alone (Including Distributions)(2)     $770     $790      $740    $760    $770      $815



     Consolidated                                 $920     $950      $885    $925    $945    $1,010



               (1) Updated EBITDAX based on NYMEX
                as of July 8, 2019.


               (2) 2019 and 2020 include
                approximately $55 million and $75
                million, respectively, of
                projected distributions from
                ownership interests in CNXM.



               Note: CNX is unable to provide a
                reconciliation of projected
                financial results contained in
                this release, including FCF,
                adjusted EBITAX, fully burdened
                cash costs and other metrics to
                their respective comparable
                financial measure calculated in
                accordance with GAAP.  This is
                due to our inability to
                calculate the comparable GAAP
                projected metrics, including
                operating income and total
                production costs, given the
                unknown effect, timing, and
                potential significance of
                certain income statement items.

The decreases in 2019 adjusted EBITDAX figures are due to a decline in natural gas prices since April 5, 2019, which is the date used for the previous guidance. The updated guidance assumes 2019 NYMEX gas price of $2.45 per MMBtu on open volumes and a basis differential of negative $0.275 per Mcf, based on the midpoint the guidance range. This compares to the previous guidance, which assumed a 2019 NYMEX gas price of $2.88 per MMBtu and a basis differential of negative $0.225 per Mcf, based on the midpoint of the guidance range.


                   Capital Expenditures       Reaffirmed Updated


                                                 2019E    2020E


                   ($ in millions)                Low      High   Low   High



      Drilling & Completion (D&C)                   $695     $745  $450    $520



     Non-D&C                                       $200     $200   $90    $100


                   Total Stand-Alone Capital        $895     $945  $540    $620



      CNX Midstream LP Capital                      $310     $330   $80    $100


                   Total Consolidated Capital     $1,205   $1,275  $620    $720

Second quarter 2019 capital came in as expected, and the company is reaffirming full-year 2019 capital guidance, while increasing production volumes. CNX expects non-D&C capital expenditures to decrease by over 50% in 2020, when compared to 2019, as the company expects to benefit from these one-time investments that we expect to accrue value over time.

About CNX

CNX Resources Corporation (NYSE: CNX) is one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin. The company deploys an organic growth strategy focused on responsibly developing its resource base. As of December 31, 2018, CNX had 7.9 trillion cubic feet equivalent of proved natural gas reserves. The company is a member of the Standard & Poor's Midcap 400 Index. Additional information may be found at www.cnx.com.

Non-GAAP Financial Measures

Definitions: EBIT is defined as earnings before deducting net interest expense (interest expense less interest income) and income taxes. EBITDAX is defined as earnings before deducting net interest expense (interest expense less interest income), income taxes, depreciation, depletion and amortization, and exploration. Adjusted EBITDAX consolidated is defined as EBITDAX after adjusting for the discrete items listed below. Stand-alone EBITDAX is defined as the adjusted EBITDAX related to both CNX's E&P and Unallocated segments (See Note 24 - Segment Information in CNX's Annual Report on Form 10-K as filed with the Securities and Exchange Commission for more information) plus the distributions CNX receives during the current period from CNXM related to its limited partnership units, general partner units, and incentive distribution rights (IDRs). Although EBIT, EBITDAX, Stand-alone EBITDAX and adjusted EBITDAX consolidated are not measures of performance calculated in accordance with generally accepted accounting principles, management believes that they are useful to an investor in evaluating CNX Resources because they are widely used to evaluate a company's operating performance. We exclude stock-based compensation from adjusted EBITDAX because we do not believe it accurately reflects the actual operating expense incurred during the relevant period and may vary widely from period to period irrespective of operating results. Investors should not view these metrics as a substitute for measures of performance that are calculated in accordance with generally accepted accounting principles. In addition, because all companies do not calculate EBIT, EBITDAX, Stand-alone EBITDAX or adjusted EBITDAX consolidated identically, the presentation here may not be comparable to similarly titled measures of other companies. Adjusted EBITDAX per outstanding share, adjusted net income per outstanding share, Stand-alone EBITDAX and adjusted EBITDAX consolidated, with shares measured as of July 15, 2019, are not measures of performance calculated in accordance with generally accepted accounting principles. Management believes that these financial measures are useful to an investor in evaluating CNX Resources because (i) analysts utilize these metrics when evaluating company performance and, (ii) given that we have an active share repurchase program, analysts have requested this information as of a recent practicable date, and we want to provide updated information to investors.

Reconciliation of EBIT, EBITDAX, adjusted EBITDAX consolidated, Stand-alone EBITDAX, adjusted net income, net debt and TTM EBITDAX to financial net income is as follows:


                                                                                                                  
       
       Three Months Ended


                                                                                                                    
       
          June 30,


                                                                                             2019                                   2019                      2019




     
                
                  Dollars in thousands                             Stand-alone(1)                             Midstream            Total Company



     Net Income                                                                                       $
       148,281                                                    $
       44,413                    $
         192,694



     Interest Expense                                                                     32,467                                            7,685                                  40,152



     Interest Income                                                                        (71)                                                                                   (71)



     Income Tax Expense                                                                   40,791                                                                                  40,791




     
                Earnings Before Interest & Taxes (EBIT)                                        $
      
         221,468                                                $
     
         52,098             $
        
           273,566



     Depreciation, Depletion & Amortization                                              120,705                                            8,294                                 128,999



     Exploration Expense                                                                   5,567                                                                                   5,567




     
                Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)                $
      
         347,740                                                $
     
         60,392             $
        
           408,132




     Adjustments:



     Unrealized Gain on Commodity Derivative Instruments                                            $
       (210,909)                                 
              $                                  $
         (210,909)



     Loss on Debt Extinguishment                                                              77                                                                                      77



     Stock-Based Compensation                                                             23,333                                              540                                  23,873



     Severance                                                                             1,182                                                                                   1,182




     Total Pre-tax Adjustments                                                                      $
       (186,317)                                                      $
       540                  $
         (185,777)




     
                Adjusted EBITDAX Consolidated                                                  $
      
         161,423                                                $
     
         60,932             $
        
           222,355



     
                Midstream Distributions                                                 13,251                                              N/A                                    N/A



     
                Stand-alone EBITDAX                                                            $
      
         174,674                                           N/A                          N/A



                            1 Stand-alone includes both
                             CNX's E&P and Unallocated
                             segments. See Note 24 - Segment
                             Information in CNX's Annual
                             Report on Form 10-K for the
                             fiscal year ended December 31,
                             2018, as filed with the
                             Securities and Exchange
                             Commission, for more
                             information.


                                                                                                                 
       
       Three Months Ended


                                                                                                                   
       
          June 30,


                                                                                             2018                                  2018                      2018




     
                
                  Dollars in thousands                             Stand-alone(1)                            Midstream            Total Company



     Net Income                                                                                        $
      33,614                                                    $
        27,780                       $
        61,394



     Interest Expense                                                                     31,320                                           7,118                                      38,438



     Interest Income



     Income Tax Benefit                                                                 (31,102)                                                                                  (31,102)




     
                Earnings Before Interest & Taxes (EBIT)                                         $
      
        33,832                                                $
     
          34,898                 $
       
          68,730



     Depreciation, Depletion & Amortization                                              111,125                                           7,962                                     119,087



     Exploration Expense                                                                   3,699                                                                                      3,699




     
                Earnings Before Interest, Taxes, DD&A and Exploration (EBITDAX)                $
      
        148,656                                                $
     
          42,860                $
       
          191,516




     Adjustments:



     Unrealized Gain on Commodity Derivative Instruments                                              $
      (8,976)                                 
              $                                       $
        (8,976)



     Impairment of Other Intangible Assets                                                18,650                                                                                     18,650



     Other Transaction Fees                                                                  257                                                                                        257



     Loss on Debt Extinguishment                                                          23,413                                                                                     23,413



     Stock-Based Compensation                                                              5,017                                             691                                       5,708



     Total Pre-tax Adjustments                                                                         $
      38,361                                                       $
        691                       $
        39,052



     
                Adjusted EBITDAX Consolidated                                                  $
      
        187,017                                                $
     
          43,551                $
       
          230,568



     
                Midstream Distributions                                                  9,088                                             N/A                                        N/A



     
                Stand-alone EBITDAX                                                            $
      
        196,105                                           N/A                              N/A



                            1 Stand-alone includes both
                             CNX's E&P and Unallocated
                             segments. See Note 24 - Segment
                             Information in CNX's Annual
                             Report on Form 10-K for fiscal
                             year ended December 31, 2018, as
                             filed with the Securities and
                             Exchange Commission, for more
                             information.

Reconciliation of Adjusted Net Income


                                                                                     Three Months Ended                                                    Three Months Ended


                                                                           
        
             June 30,                                              
        
              June 30,


                                                                      2019                                         2018                     2019                                          2018




     
                
                  Dollars in thousands      Stand-alone(1)                              Stand-alone(1)           Total Company                                Total Company




     Net (Loss) Income from EBITDAX Reconciliation                               $
            148,281                                                     $
             33,614                         $
      192,694     $
     61,394



     Adjustments:



     Total Pre-tax Adjustments from EBITDAX Reconciliation      (186,317)                                               38,361                                                    (185,777)          39,052



     Tax effect of Adjustments                                     50,530                                              (10,405)                                                      50,383         (10,592)



     
                Adjusted Net Income                                       $
       
              12,494                                               $
       
               61,570                      $
     
        57,300 $
     
       89,854



                            1 Stand-alone includes both
                             CNX's E&P and Unallocated
                             segments. See Note 24 - Segment
                             Information in CNX's Annual
                             Report on Form 10-K for the
                             fiscal year ended December 31,
                             2018, as filed with the
                             Securities and Exchange
                             Commission, for more
                             information.

Management uses net debt to determine the company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt attributable to CNX Resources shareholders is useful to investors in determining the company's leverage ratio since the company could choose to use its cash and cash equivalents to retire debt.


                
              
             Net Debt            
          
           June 30, 2019

                               ---

                                              Stand-alone(1)                                 Midstream                  Total Company



     Total Long-Term Debt (GAAP)                            $
       2,016,687                           $
     601,688                      $
     2,618,375



     Less Cash and Cash Equivalents                  19,864                          12,747                     32,611



     Net Debt (Non-GAAP)                                    $
       1,996,823                           $
     588,941                      $
     2,585,764



                            (1)Stand-alone includes both
                             CNX's E&P and Unallocated
                             segments.

Reconciliation of Trailing-Twelve-Months (TTM) EBITDAX by Quarter


                                                                                                                    
       
               Three Months                                                               Twelve
                                                                                                                                                                                                                    Months
                                                                                                                      
       
                Ended
                                                                                                                                                                                                               Ended



                                                                                    September 30,                         December 31,              March 31,                                 June 30,                             June 30,



     
                Dollars in thousands                                                      2018                                  2018                    2019                          2019                                      2019




     Net Income (Loss)                                                                                $
       146,756                                                 $
     129,415                               $
              (64,651)                             $
       192,694        $
       404,214



     Interest Expense                                                                     35,723                                            33,222                               35,771                                    40,152              144,868



     Interest Income                                                                        (42)                                                1                                (722)                                     (71)               (834)



     Income Tax Expense (Benefit)                                                         56,678                                          (23,713)                            (11,559)                                   40,791               62,197




     
                Earnings Before Interest & Taxes (EBIT)                                        $
      
         239,115                                             $
     
       138,925                         $
       
                (41,161)                       $
       
         273,566   $
      
         610,445



     Depreciation, Depletion & Amortization                                              119,585                                           130,084                              125,161                                   128,999              503,829



     Exploration Expense                                                                   3,321                                             2,633                                3,258                                     5,567               14,779




     
                Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)               $
      
         362,021                                             $
     
       271,642                           $
       
                87,258                        $
       
         408,132 $
      
         1,129,053




     Adjustments:



     Unrealized (Gain) Loss on Commodity Derivative Instruments                                      $
       (15,181)                                                 $
     36,727                                $
              153,994                            $
       (210,909)      $
       (35,369)



     Settlement Expense                                                                    2,000                                                                                                                                              2,000



     (Gain) Loss on Certain Asset Sales and Abandonments                               (130,849)                                               96                                3,564                                                     (127,189)



     Severance Expense                                                                       513                                              (55)                                                                        1,182                1,640



     Stock Based Compensation                                                              5,245                                             5,478                               10,903                                    23,873               45,499



     Loss (Gain) on Debt Extinguishment                                                   15,385                                             (315)                               7,537                                        77               22,684



     Shaw Event                                                                                                                                                                 4,305                                                         4,305



     Total Pre-tax Adjustments                                                                      $
       (122,887)                                                 $
     41,931                                $
              180,303                            $
       (185,777)      $
       (86,430)



     
                Adjusted EBITDAX Consolidated TTM                                              $
      
         239,134                                             $
     
       313,573                          $
       
                267,561                        $
       
         222,355 $
      
         1,042,623

Reconciliation of Stand-alone EBITDAX Trailing-Twelve-Months (TTM)


                                                                                                          
            
     Twelve Months Ended June 30, 2019



     
                Dollars in thousands                                             Stand-alone(1)                              Midstream              Total Company




     Net Income                                                                                       $
      256,735                                                        $
      147,479                        $
        404,214



     Interest Expense                                                                     115,837                                              29,031                                   144,868



     Interest Income                                                                        (834)                                                                                       (834)



     Income Tax Expense                                                                    62,197                                                                                       62,197




     
                Earnings Before Interest & Taxes  (EBIT)                                        $
     
        433,935                                                    $
     
        176,510                  $
       
          610,445



     Depreciation, Depletion & Amortization                                               471,938                                              31,891                                   503,829



     Exploration Expense                                                                   14,779                                                                                       14,779




     
                Earnings Before Interest, Taxes, DD&A, and Exploration (EBITDAX)                $
     
        920,652                                                    $
     
        208,401                $
       
          1,129,053




     Adjustments:



     Unrealized Gain on Commodity Derivative Instruments                                             $
      (35,369)                                      
              $                                      $
        (35,369)



     Settlement Expense                                                                     2,000                                                                                        2,000



     (Gain) Loss on Certain Asset Sales and Abandonments                                (134,418)                                              7,229                                 (127,189)



     Severance Expense                                                                      1,640                                                                                        1,640



     Stock Based Compensation                                                              43,202                                               2,297                                    45,499



     Loss on Debt Extinguishment                                                           22,684                                                                                       22,684



     Shaw Event                                                                             4,305                                                                                        4,305




     Total Pre-tax Adjustments                                                                       $
      (95,956)                                                         $
      9,526                       $
        (86,430)



     
                Adjusted EBITDAX Consolidated TTM                                               $
     
        824,696                                                    $
     
        217,927                $
       
          1,042,623



     
                Midstream Distributions                                                  46,559                                                 N/A                                      N/A




     
                Stand-alone EBITDAX TTM                                                         $
     
        871,255                                                N/A                            N/A



                            1 Stand-alone includes both
                             CNX's E&P and Unallocated
                             Segments.

Cautionary Statements

We are including the following cautionary statement in this press release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of us. With the exception of historical matters, the matters discussed in this press release are forward-looking statements (as defined in 21E of the Securities Exchange Act of 1934 (the "Exchange Act")) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," "will," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe a strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following: prices for natural gas and natural gas liquids are volatile and can fluctuate widely based upon a number of factors beyond our control including oversupply relative to the demand for our products, weather and the price and availability of alternative fuels; an extended decline in the prices we receive for our natural gas and natural gas liquids affecting our operating results and cash flows; our dependence on gathering, processing and transportation facilities and other midstream facilities owned by CNXM and others; disruption of, capacity constraints in, or proximity to pipeline systems that could limit sales of our natural gas and natural gas liquids, and decreases in availability of third-party pipelines or other midstream facilities interconnected to CNXM's gathering systems; uncertainties in estimating our economically recoverable natural gas reserves, and inaccuracies in our estimates; the high-risk nature of drilling natural gas wells; our identified drilling locations are scheduled out over multiple years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling; the impact of potential, as well as any adopted environmental regulations including any relating to greenhouse gas emissions on our operating costs as well as on the market for natural gas and for our securities; environmental regulations introduce uncertainty that could adversely impact the market for natural gas with potential short and long-term liabilities; the risks inherent in natural gas operations, including our reliance upon third party contractors, being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, explosions, accidents and weather conditions that could impact financial results; decreases in the availability of, or increases in the price of, required personnel, services, equipment, parts and raw materials to support our operations; if natural gas prices remain depressed or drilling efforts are unsuccessful, we may be required to record write-downs of our proved natural gas properties; a loss of our competitive position because of the competitive nature of the natural gas industry or overcapacity in this industry impairing our profitability; deterioration in the economic conditions in any of the industries in which our customers operate, a domestic or worldwide financial downturn, or negative credit market conditions; hedging activities may prevent us from benefiting from price increases and may expose us to other risks; our inability to collect payments from customers if their creditworthiness declines or if they fail to honor their contracts; existing and future government laws, regulations and other legal requirements that govern our business may increase our costs of doing business and may restrict our operations; significant costs and liabilities may be incurred as a result of pipeline and related facility integrity management program testing and any related pipeline repair or preventative or remedial measures; our ability to find adequate water sources for our use in natural gas drilling, or our ability to dispose of or recycle water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules; the outcomes of various legal proceedings, including those which are more fully described in our reports filed under the Exchange Act; acquisitions and divestitures we anticipate may not occur or produce anticipated benefits; risks associated with our debt; failure to find or acquire economically recoverable natural gas reserves to replace our current natural gas reserves; decrease in our borrowing base, which could decrease for a variety of reasons including lower natural gas prices, declines in natural gas proved reserves, and lending requirements or regulations; we may operate a portion of our business with one or more joint venture partners or in circumstances where we are not the operator, which may restrict our operational and corporate flexibility and we may not realize the benefits we expect to realize from a joint venture; changes in federal or state income tax laws, particularly in the area of intangible drilling costs; challenges associated with strategic determinations, including the allocation of capital and other resources to strategic opportunities; our development and exploration projects, as well as CNXM's midstream system development, require substantial capital expenditures; terrorist attacks or cyber-attacks could have a material adverse effect on our business, financial condition or results of operations; construction of new gathering, compression, dehydration, treating or other midstream assets by CNXM may not result in revenue increases and may be subject to regulatory, environmental, political, legal and economic risks; our success depends on key members of our management and our ability to attract and retain experienced technical and other professional personnel; we may not achieve some or all of the expected benefits of the separation of CONSOL Energy; CONSOL Energy may fail to perform under various transaction agreements that were executed as part of the separation, including with respect to indemnification obligations; CONSOL Energy may not be able to satisfy its indemnification obligations in the future and such indemnities may not be sufficient to hold us harmless from the full amount of liabilities for which CONSOL Energy has been allocated responsibility; and the separation could result in substantial tax liability; and, with respect to the sale of the Ohio Joint Venture Utica assets, disruption to our business, including customer, employee and supplier relationships resulting from this transaction, and the impact of the transaction on our future operating and financial results. Additional factors are described in detail under the captions "Forward Looking Statements" and "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission, as supplemented by our quarterly reports on Form 10-Q.


                                                                         
        
              CNX RESOURCES CORPORATION AND SUBSIDIARIES


                                                                           
           
              CONSOLIDATED STATEMENTS OF INCOME





     
                (Dollars in thousands, except per share data)                                     Three Months Ended                                  Six Months Ended



     
                (Unaudited)                                                      
            
                June 30,                             
        
            June 30,



     
                Revenues and Other Operating Income:                          2019                             2018                2019                    2018

                                                                                                                                                            ---


     Natural Gas, NGLs and Oil Revenue                                               $
              342,865                                  $
        334,517                      $
            778,811      $
        740,140



     Gain on Commodity Derivative Instruments                                221,581                                       25,660                         26,205                         60,747



     Purchased Gas Revenue                                                    18,768                                        9,930                         34,989                         27,985



     Midstream Revenue                                                        18,895                                       23,483                         37,338                         49,737



     Other Operating Income                                                    2,923                                        8,534                          6,120                         19,244




     
                Total Revenue and Other Operating Income                   605,032                                      402,124                        883,463                        897,853



     
                Costs and Expenses:



     
                Operating Expense



     Lease Operating Expense                                                  19,876                                       25,338                         38,504                         62,148



     Transportation, Gathering and Compression                                84,614                                       75,767                        164,023                        162,028



     Production, Ad Valorem, and Other Fees                                    7,030                                        7,703                         13,976                         16,936



     Depreciation, Depletion and Amortization                                128,999                                      119,087                        254,159                        243,754



     Exploration and Production Related Other Costs                            5,567                                        3,699                          8,825                          6,079



     Purchased Gas Costs                                                      18,772                                        9,747                         34,986                         26,801



     Impairment of Other Intangible Assets                                         -                                      18,650                                                       18,650



     Selling, General, and Administrative Costs                               48,970                                       34,909                         84,709                         66,258



     Other Operating Expense                                                  17,976                                       17,786                         41,451                         33,832




     
                Total Operating Expense                                    331,804                                      312,686                        640,633                        636,486



     
                Other Expense (Income)



     Other (Income) Expense                                                     (99)                                         575                          (681)                       (5,917)



     (Gain) Loss on Asset Sales and Abandonments                               (387)                                     (3,280)                         2,699                       (14,622)



     Gain on Previously Held Equity Interest                                       -                                                                                               (623,663)



     Loss on Debt Extinguishment                                                  77                                       23,413                          7,614                         39,048



     Interest Expense                                                         40,152                                       38,438                         75,923                         76,989




     
                Total Other Expense (Income)                                39,743                                       59,146                         85,555                      (528,165)



     
                Total Costs and Expenses                                   371,547                                      371,832                        726,188                        108,321




     
                Earnings Before Income Tax                                 233,485                                       30,292                        157,275                        789,532



     Income Tax Expense (Benefit)                                             40,791                                     (31,102)                        29,231                        182,592




     
                Net Income                                                 192,694                                       61,394                        128,044                        606,940



     Less: Net Income Attributable to Noncontrolling Interest                 30,217                                       19,380                         52,904                         37,363



     
                Net Income Attributable to CNX Resources Shareholders              $
              162,477                                   $
        42,014                       $
            75,140      $
        569,577






     
                Earnings per Share



     
                Basic                                                                 $
              0.85                                     $
        0.19                         $
            0.39         $
        2.60



     
                Diluted                                                               $
              0.84                                     $
        0.19                         $
            0.38         $
        2.57





     
                Dividends Declared                                       
           $                                               
      $                                  
     $                    
     $


                                                                   
          
                CNX RESOURCES CORPORATION AND SUBSIDIARIES


                                                                 
          
                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME




                                                                             Three Months Ended                                          Six Months Ended



     
                (Dollars in thousands)                     
           
               June 30,                           
              
                June 30,



     
                (Unaudited)                              2019                         2018                   2019                                    2018

                                                                                                                                                      ---


     Net Income                                                   $
          192,694                                    $
              61,394                     $
      128,044  $
     606,940



     Other Comprehensive Income:


        Actuarially Determined Long-Term Liability
         Adjustments (Net of tax: ($14), ($687), ($29),
         ($781))                                              41                                  1,812                                          85                 1,982





     Comprehensive Income                               192,735                                 63,206                                     128,129               608,922




      Less: Comprehensive Income Attributable to
       Noncontrolling Interest                            30,217                                 19,380                                      52,904                37,363





      Comprehensive Income Attributable to CNX Resources
       Shareholders                                                $
          162,518                                    $
              43,826                      $
      75,225  $
     571,559


                                               
            
       CNX RESOURCES CORPORATION AND SUBSIDIARIES


                                                      
       
            CONSOLIDATED BALANCE SHEETS




                                                                        (Unaudited)


                   (Dollars in thousands)                                 June 30,                                    December 31,
                                                                               2019                            2018

                                                                                                               ---


     
                ASSETS



     Current Assets:



     Cash and Cash Equivalents                                                          $
              32,611                         $
        17,198



     Accounts and Notes Receivable:



     Trade                                                                 125,084                           252,424



     Other Receivables                                                      11,636                            11,077



     Supplies Inventories                                                   11,242                             9,715



     Recoverable Income Taxes                                              113,592                           149,481



     Prepaid Expenses                                                      165,929                            61,791


                   Total Current Assets                                     460,094                           501,686



     Property, Plant and Equipment:


      Property, Plant and Equipment                                      10,203,489                         9,567,428


      Less-Accumulated Depreciation,
       Depletion and Amortization                                         2,863,627                         2,624,984


                   Total Property, Plant and Equipment-
                    Net                                                   7,339,862                         6,942,444



     Other Assets:


      Operating Lease Right-of-Use Assets                                   224,950



     Investment in Affiliates                                               17,637                            18,663



     Goodwill                                                              796,359                           796,359



     Other Intangible Assets                                                99,923                           103,200



     Other                                                                 207,872                           229,818


                   Total Other Assets                                     1,346,741                         1,148,040




     
                TOTAL ASSETS                                                       $
              9,146,697                      $
        8,592,170


                                                    
              
       CNX RESOURCES CORPORATION AND SUBSIDIARIES


                                                            
        
             CONSOLIDATED BALANCE SHEETS




                                                                                   (Unaudited)


                   (Dollars in thousands, except per share data)                     June 30,                                    December 31,
                                                                                          2019                            2018

                                                                                                                          ---


     
                LIABILITIES AND EQUITY



     Current Liabilities:



     Accounts Payable                                                                             $
              305,070                          $
       229,806


      Current Portion of Finance Lease Obligations                                       7,133                             6,997


      Current Portion of Operating Lease Obligations                                    66,209



     Other Accrued Liabilities                                                        244,833                           286,172



     
                Total Current Liabilities                                           623,245                           522,975



     Non-Current Liabilities:



     Long-Term Debt                                                                 2,618,375                         2,378,205



     Finance Lease Obligations                                                         10,569                            13,299



     Deferred Income Taxes                                                            427,942                           398,682



     Operating Lease Obligations                                                      137,464



     Asset Retirement Obligations                                                      32,951                            37,479



     Other                                                                            196,156                           159,787


                   Total Non-Current Liabilities                                     3,423,457                         2,987,452




     
                TOTAL LIABILITIES                                                 4,046,702                         3,510,427



     Stockholders' Equity:


      Common Stock, $.01 Par Value; 500,000,000 Shares
       Authorized, 187,559,362 Issued and Outstanding
       at June 30, 2019; 198,663,342 Issued and
       Outstanding at December 31, 2018                                                  1,879                             1,990



     Capital in Excess of Par Value                                                 2,203,969                         2,264,063


      Preferred Stock, 15,000,000 shares authorized,
       None issued and outstanding                                                           -



     Retained Earnings                                                              2,127,627                         2,071,809



     Accumulated Other Comprehensive Loss                                             (7,819)                          (7,904)


                   Total CNX Resources Stockholders' Equity                          4,325,656                         4,329,958



     Noncontrolling Interest                                                          774,339                           751,785



                   TOTAL STOCKHOLDERS' EQUITY                                        5,099,995                         5,081,743



                   TOTAL LIABILITIES AND EQUITY                                                  $
              9,146,697                        $
       8,592,170


                                                                          
           
               CNX RESOURCES CORPORATION AND SUBSIDIARIES


                                                                        
          
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY




                                                                                 
             
                Three Months Ended                 
        
              Six Months Ended



     (Dollars in thousands)                                                          
             
                June 30,                         
         
              June 30,



     (Unaudited)                                                                2019                                          2018                  2019                   2018



     
                Total Stockholders' Equity, Beginning Balance                        $
             4,974,809                               $
        5,067,906                       $
      5,081,743  $
     3,899,899






     
                Common Stock and Capital in Excess of Par Value:



     
                Beginning Balance                                        2,251,475                                       2,411,665                       2,266,053                 2,452,564



     Issuance of Common Stock                                                     62                                             507                             161                     1,563



     Purchase and Retirement of Common Stock                                (69,022)                                       (42,402)                       (93,990)                 (88,688)



     Amortization of Stock-Based Compensation Awards                          23,333                                           5,018                          33,624                     9,349




     
                Ending Balance                                           2,205,848                                       2,374,788                       2,205,848                 2,374,788






     
                Retained Earnings:



     
                Beginning Balance                                        1,971,898                                       1,940,882                       2,071,809                 1,455,811



     Net Income                                                              162,477                                          42,014                          75,140                   569,577



     Purchase and Retirement of Common Stock                                 (5,261)                                       (42,354)                       (13,790)                 (80,031)



     Shares Withheld for Taxes                                               (1,487)                                           (35)                        (5,532)                  (4,850)




     
                Ending Balance                                           2,127,627                                       1,940,507                       2,127,627                 1,940,507






     
                Accumulated Other Comprehensive Loss:



     
                Beginning Balance                                          (7,860)                                        (8,306)                        (7,904)                  (8,476)



     Other Comprehensive Income                                                   41                                           1,812                              85                     1,982




     
                Ending Balance                                             (7,819)                                        (6,494)                        (7,819)                  (6,494)






     
                Total CNX Resources Corporation Stockholders' Equity     4,325,656                                       4,308,801                       4,325,656                 4,308,801






     
                Non-Controlling Interest:



     
                Beginning Balance                                          759,296                                         723,665                         751,785



     Net Income                                                               30,217                                          19,380                          52,904                    37,363



     Shares Withheld for Taxes                                                  (25)                                                                         (690)                    (347)



     Amortization of Stock-Based Compensation Awards                             540                                             691                           1,152                     1,269



     Distributions to CNXM Noncontrolling Interest Holders                  (15,689)                                       (13,614)                       (30,812)                 (26,740)



     Acquisition of CNX Gathering, LLC                                             -                                                                                                718,577




     
                Ending Balance                                             774,339                                         730,122                         774,339                   730,122






     
                Total Stockholders' Equity, Ending Balance                           $
             5,099,995                               $
        5,038,923                       $
      5,099,995  $
     5,038,923


                                                                                
       
          CNX RESOURCES AND SUBSIDIARIES


                                                                              
       
         CONSOLIDATED STATEMENTS OF CASH FLOWS





              
                (Dollars in thousands)                                                           Three Months Ended                           Six Months Ended



              
                (Unaudited)                                                  
              
                June 30,                     
            
        June 30,



              
                Cash Flows from Operating Activities:                          2019                               2018              2019                     2018

                                                                                                                                                                       ---


              Net Income                                                                         $
              192,694                                $
      61,394               $
          128,044  $
      606,940



              Adjustments to Reconcile Net Income to Net Cash Provided by
    Operating Activities:



              Depreciation, Depletion and Amortization                                 128,999                                       119,087                        254,159           243,754



              Amortization of Deferred Financing Costs                                   2,701                                         1,778                          4,408             4,821



              Impairment of Other Intangible Assets                                          -                                       18,650                                          18,650



              Stock-Based Compensation                                                  23,873                                         5,708                         34,776            10,618



              (Gain) Loss on Asset Sales and Abandonments                                (387)                                      (3,280)                         2,699          (14,622)



              Gain on Previously Held Equity Interest                                        -                                                                                   (623,663)



              Loss on Debt Extinguishment                                                   77                                        23,413                          7,614            39,048



              Gain on Commodity Derivative Instruments                               (221,581)                                     (25,660)                      (26,205)         (60,747)



              Net Cash Received (Paid) in Settlement of Commodity Derivative            10,672                                        16,684                       (30,710)            (307)
    Instruments



              Deferred Income Taxes                                                     40,790                                      (23,500)                        29,231           190,194



              Equity in Earnings of Affiliates                                           (527)                                      (1,669)                       (1,030)          (3,447)



              Return on Equity Investment                                                  750                                                                       2,056



              Changes in Operating Assets:



              Accounts and Notes Receivable                                             31,511                                        29,651                        125,991            44,156



              Recoverable Income Taxes                                                       -                                      (7,602)                        35,888             3,743



              Supplies Inventories                                                       5,400                                           177                        (1,527)              243



              Prepaid Expenses                                                             326                                         2,382                          4,287             1,327



              Changes in Operating Liabilities:



              Accounts Payable                                                          35,308                                       (5,350)                        29,346           (3,198)



              Accrued Interest                                                           2,870                                      (28,263)                         5,050           (3,358)



              Other Operating Liabilities                                              (1,958)                                        6,755                       (36,392)            1,504



              Changes in Other Liabilities                                                 601                                           126                        (6,907)          (5,374)



              Other                                                                       (98)                                        1,108                          (105)              648




              Net Cash Provided by Operating Activities                                252,021                                       191,589                        560,673           450,930




              
                Cash Flows from Investing Activities:



              Capital Expenditures                                                   (329,227)                                    (264,174)                      (628,365)         (496,659)



              CNX Gathering LLC Acquisition, Net of Cash Acquired                            -                                                                                   (299,272)



              Proceeds from Asset Sales                                                  1,281                                        51,657                          7,087           153,420



              Net Distributions from Equity Affiliates                                       -                                                                                       3,650




              Net Cash Used in Investing Activities                                  (327,946)                                    (212,517)                      (621,278)         (638,861)




              
                Cash Flows from Financing Activities:



              Payments on Miscellaneous Borrowings                                     (1,768)                                      (1,705)                       (3,515)          (3,748)



              Payments on Long-Term Notes                                                    -                                    (318,000)                      (405,876)         (723,419)



              Net Proceeds from (Payments on) CNXM Revolving Credit Facility            71,350                                       (9,000)                       124,000         (138,500)



              Proceeds from CNX Revolving Credit Facility                              116,000                                       422,000                         18,000           422,000



              Proceeds from Issuance of CNX Senior Notes                                     -                                                                    500,000



              Proceeds from Issuance of CNXM Senior Notes                                    -                                                                                     394,000



              Distributions to CNXM Noncontrolling Interest Holders                   (15,689)                                     (13,614)                      (30,812)         (26,740)



              Proceeds from Issuance of Common Stock                                        62                                           507                            161             1,563



              Shares Withheld for Taxes                                                (1,512)                                         (35)                       (6,222)          (5,197)



              Purchases of Common Stock                                               (77,282)                                     (85,841)                     (109,780)         (166,720)



              Debt Repurchase and Financing Fees                                       (6,597)                                      (1,028)                       (9,938)         (19,629)




              Net Cash Provided by (Used in) Financing Activities                       84,564                                       (6,716)                        76,018         (266,390)




              Net Increase (Decrease) in Cash and Cash Equivalents                       8,639                                      (27,644)                        15,413         (454,321)



              Cash and Cash Equivalents at Beginning of Period                          23,972                                        82,490                         17,198           509,167




              Cash and Cash Equivalents at End of Period                                          $
              32,611                                $
      54,846                $
          32,611   $
      54,846

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SOURCE CNX Resources Corporation