CNX Resources Corporation Announces Pricing of $400 Million of Senior Notes

Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
CNX Resources Corporation announces the pricing of $400 million senior notes due 2032, with plans to use proceeds for debt repayment and general corporate purposes, highlighting its commitment to long-term shareholder value.
  • None.
  • None.

The announcement by CNX Resources Corporation regarding the pricing of its $400 million 7.250% senior notes due 2032 signifies a strategic maneuver in the company's capital structure. By refinancing its existing 7.250% senior notes due 2027 through a tender offer and a subsequent redemption, CNX is effectively managing its debt maturity profile and interest expense. This could be seen as a proactive step towards liquidity management and may signal a robust credit stance to investors. The decision to repay borrowings under its revolving credit facility further indicates a move towards optimizing its balance sheet, potentially reducing future interest costs and improving financial flexibility.

The offering's success will largely depend on market conditions and investor appetite for energy sector debt, particularly given the current interest rate environment. Investors will be scrutinizing the transaction's terms, the company's leverage ratios and cash flow forecasts to assess the risk-adjusted returns of the new issuance. The fact that the notes are being offered at face value suggests confidence in CNX's creditworthiness and the perceived stability of its cash flows, which are underpinned by its significant natural gas reserves.

From an industry perspective, CNX Resources Corporation's focus on ultra-low carbon intensive natural gas positions it favorably within the broader energy market, particularly as global energy demands shift towards cleaner sources. The company's emphasis on technology development and innovation in Appalachia, a region with a rich energy history and substantial reserves, could offer competitive advantages in both cost efficiency and environmental compliance.

The strategic use of proceeds from the new senior notes issuance for general corporate purposes may also provide CNX with the capital to further invest in technological advancements or to capitalize on opportunities within the midstream segment. This could bolster the company's long-term per share value and enhance its market position. However, investors should consider the volatility of natural gas prices and regulatory changes, which could impact the company's performance and, by extension, the attractiveness of its newly issued debt.

Investors and market analysts will be closely monitoring the tender offer's outcome and the subsequent redemption of the 2027 notes. The response to the tender offer could serve as a barometer for the market's confidence in CNX's financial health and its strategic direction. A successful tender offer followed by a redemption could be interpreted as a positive signal, potentially leading to a favorable impact on CNX's stock price and credit ratings.

Moreover, the fact that the notes will not be registered and are offered only to qualified institutional buyers and non-U.S. persons suggests a targeted approach to fundraising, likely aimed at sophisticated investors who are familiar with the sector and the company. This approach can sometimes limit the liquidity of the notes but may also result in a more stable investor base.

PITTSBURGH, Feb. 12, 2024 /PRNewswire/ -- CNX Resources Corporation (NYSE: CNX) ("CNX," "we," or "our") today announced the pricing of $400 million of its 7.250% senior notes due 2032 (the "Notes") at a price to the public of 100.0% of their face value. The offering of Notes is expected to close on February 23, 2024, subject to the satisfaction of customary closing conditions. The Notes will be guaranteed by all of CNX's restricted subsidiaries that guarantee its revolving credit facility.

CNX intends to use the net proceeds of the sale of the Notes to (i) purchase any and all of its outstanding 7.250% senior notes due 2027 (the "2027 Notes") pursuant to the tender offer that commenced concurrently with the offering of the Notes (the "Tender Offer"), (ii) to the extent any 2027 Notes remain outstanding after the Tender Offer, fund the redemption of all 2027 Notes not purchased in the Tender Offer (the "Redemption") and (iii) repay borrowings under its revolving credit facility, with any remaining proceeds used for general corporate purposes.

The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.

CNX Resources Corporation (NYSE: CNX) is a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, one of the most energy abundant regions in the world. With the benefit of a 160-year regional legacy, substantial asset base, leading core operational competencies, technology development and innovation, and astute capital allocation methodologies, we responsibly develop our resources and deploy free cash flow to create long-term per share value for our shareholders, employees, and the communities where we operate. As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves.

Cautionary Statements:

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering of Notes may be made only by means of an offering memorandum. This press release does not constitute an offer to purchase or the solicitation of an offer to sell any 2027 Notes in the Tender Offer, nor does it constitute a notice of redemption under the indenture governing the 2027 Notes.

Various statements in this release, including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) 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. 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 strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release, including those relating to the offering of Notes and the use of proceeds therefrom, the Tender Offer and the Redemption, speak only as of the date of this press release; we disclaim any obligation to update these statements unless required by securities laws and we caution you not to rely on them unduly. 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 factors discussed in our 2023 Annual Report on Form 10-K under "Risk Factors," which is on file at the U.S. Securities and Exchange Commission.

CNX Resources Corporation logo (PRNewsfoto/CNX Resources Corporation,CNX...)


Cision View original content to download multimedia:

SOURCE CNX Resources Corporation


CNX intends to use the net proceeds to purchase outstanding 2027 senior notes, fund redemptions, repay borrowings, and for general corporate purposes.

The offering of senior notes is expected to close on February 23, 2024, subject to customary closing conditions.

As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves.

CNX is a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, with a focus on responsible resource development and long-term shareholder value creation.
CNX Resources Corp


CNX Rankings

CNX Latest News

CNX Stock Data

Bituminous Coal and Lignite Surface Mining
Mining, Quarrying, and Oil and Gas Extraction
Energy Minerals, Integrated Oil, Mining, Quarrying, and Oil and Gas Extraction, Bituminous Coal and Lignite Surface Mining

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. with the benefit of a more than 150-year legacy and a substantial asset base amassed over many generations, the company deploys an organic growth strategy focused on responsibly developing its resources in order to create long term value for its shareholders, employees and the communities where it operates. as of december 31, 2016, cnx had 6.3 trillion cubic feet equivalent of proved natural gas reserves. the company is a member of the standard & poor's midcap 400 index.