CNX Resources: Headwinds From Underwater Hedges
Portfolio Pulse from
CNX Resources faces challenges due to underwater hedges and unfavorable Treasury rulings on 45V tax credits. The company's stock has dropped 28% since December 1st, with 85% of 2025 production hedged, limiting cash flow upside in a rising natural gas price environment. However, the New Technologies unit's contribution to free cash flow is now more predictable, reducing downside risks.
February 08, 2025 | 3:30 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
CNX Resources' stock has dropped 28% due to underwater hedges and unfavorable Treasury rulings on 45V tax credits. The company's extensive hedging strategy limits cash flow upside in a rising natural gas price environment.
The 28% stock drop is attributed to underwater hedges and restrictive 45V tax credit rules. With 85% of 2025 production hedged, CNX's cash flow potential is limited in a rising natural gas price environment, posing a significant headwind.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100