Cnx Resources Intrinsic Value Calculation – CNX Resources to Divest Appalachian Assets for $125M
June 17, 2023
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CNX ($NYSE:CNX) Resources is a major energy company traded on the New York Stock Exchange. The company recently announced that it will be divesting of its Appalachian assets for a total of $125M. This transaction is intended to reduce the company’s debt and to allow CNX to focus on its core operations and growth opportunities. The assets being sold include natural gas operations located in Ohio and West Virginia. These operations have been CNX’s main focus in the Appalachian area, with significant investments being made in recent years.
The divestment of CNX’s Appalachian assets will help the company shift its focus towards more profitable growth opportunities. It will also reduce its debt and help the company make more strategic investments in the future. The move is expected to be beneficial for CNX’s stakeholders, as they will benefit from a stronger balance sheet and greater financial flexibility.
Market Price
CNX Resources announced on Friday that it will be divesting its Appalachian assets for $125 million. The move will increase the company’s liquidity and free up capital for future investments. Following the announcement, the stock opened at $17.5 and closed at $17.4, up 0.6% from its previous closing price of $17.2.
It is anticipated that the move will reduce CNX Resources’ debt-to-equity ratio and improve its overall long-term financial health. Overall, the divestment is expected to be beneficial for CNX Resources and its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cnx Resources. More…
| Total Revenues | Net Income | Net Margin |
| 3.63k | 1.49k | 45.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cnx Resources. More…
| Operations | Investing | Financing |
| 1.15k | -584.91 | -568.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cnx Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.34k | 4.77k | 21.24 |
Key Ratios Snapshot
Some of the financial key ratios for Cnx Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.2% | 201.1% | 57.9% |
| FCF Margin | ROE | ROA |
| 14.7% | 40.3% | 15.7% |
Analysis – Cnx Resources Intrinsic Value Calculation
At GoodWhale, we analyze CNX RESOURCES‘s financials to give investors the best understanding of the company. After our proprietary Valuation Line was applied to the company, we estimated that the fair value of CNX RESOURCES’s share is around $30.2. However, currently, the stock is trading at $17.4, which is undervalued by 42.3%. This presents a great opportunity for investors to benefit from the current market mispricing and gain potential returns. More…
Peers
The competition between CNX Resources Corp and its competitors is fierce. All of the companies are vying for the same market share, and each is trying to outdo the other in terms of product quality and customer service.
However, CNX Resources Corp has an edge over its competitors because it has a strong brand presence and a loyal customer base.
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– Earthstone Energy Inc ($NYSE:ESTE)
Stone Energy is an oil and gas exploration and production company with operations primarily in the Gulf of Mexico. The company was founded in 1993 and is headquartered in Lafayette, Louisiana.
As of 2022, Stone Energy has a market capitalization of 1.6 billion dollars and a return on equity of 18.64%. The company’s primary business is the exploration and production of oil and gas, mostly in the Gulf of Mexico. Over the past few years, Stone Energy has been transitioning its portfolio to focus more on natural gas assets. The company is currently active in several major gas plays in the Gulf, including the Haynesville Shale and the Mississippi Lime play.
– Carbon Energy Corp ($OTCPK:CRBO)
Carbon Energy Corp is a Canadian oil and gas company with a market cap of 20.76k as of 2022. The company has a Return on Equity of -36.04%. Carbon Energy Corp is engaged in the exploration, development and production of oil and gas properties in Canada. The company’s operations are focused in the Western Canadian Sedimentary Basin.
Summary
CNX Resources, a natural gas producer, recently announced a deal to sell its Appalachian assets for $125 million. The company believes the move will allow them to focus their capital investments on their operations in the Marcellus and Utica regions, where they already have a strong presence. Investors looking to capitalize on this move should consider the potential for further growth in these regions, as well as the potential for additional capital gains from the current divestment.
The sale could also provide a good opportunity for investors to reduce their exposure to the volatile Appalachian market. This move is likely to benefit CNX Resources in the long-term, as it will allow them to reallocate their resources more efficiently and pursue more profitable opportunities in other regions.
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