Breaking News Bar

Business News and Information

CNX Announces Intention to Redeem $400 Million of Its Outstanding 5.875% Senior Notes Due 2022 and Provides Financial Update

PITTSBURGH, June 3, 2020 /PRNewswire/ -- CNX Resources Corporation (NYSE: CNX) ("CNX" or the "company") today announced that it intends to redeem $400 million (the "Called Notes") of its $823.795 million aggregate principal amount of outstanding 5.875% senior notes due 2022 (CUSIP No. 20854P AL3) (the "Notes").

The redemption date for the Called Notes is expected to be June 29, 2020 (the "Redemption Date"). The redemption price on the Redemption Date will equal 100% of the principal amount of the Called Notes to be redeemed, plus accrued and unpaid interest prior to, but not including, the Redemption Date.

On May 29, 2020, Wells Fargo Bank, National Association, as trustee and paying agent, distributed a notice of redemption to all registered holders of the Notes.

Finance Update

Following the $400 million redemption of the Called Notes, the company will have a remaining aggregate principal balance of approximately $424 million and the company will have paid down the aggregate principal amount of these notes by approximately $472 million year-to-date.

The company continues to expect its balance sheet to improve, and assuming current forward gas prices and that free cash flow (FCF) generated by the company is used to reduce debt, the company remains on track to have stand-alone E&P leverage drop to below 2.0x in 2021. Also, stand-alone annual interest expense in 2021 is on track to be approximately 40% lower than it was in 2018, which highlights how CNX's balance sheet and capital structure continues to strengthen. The company's long-term FCF plan provides the optionality to pay off all outstanding debt before its due date.

Don Rush, executive vice president and CFO commented, "CNX continues to showcase the strength and depth of its asset base, cost structure, and financial discipline by lowering its leverage ratio, net debt, and annual interest expense even in these challenging times. Also, our 7-year FCF plan provides the optionality to continue to pay off all outstanding debt overtime should we choose to."

About CNX Resources Corporation

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, 2019, CNX had 8.4 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

Cautionary Statements:

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, and Section 27A of the Securities Act) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Without limiting the generality of the foregoing, forward-looking statements contained in this communication specifically include statements regarding the proposed redemption and the completion of such redemption and the company's plans to turn back online the shut-in production volumes. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The 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," 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 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 risks and uncertainties set forth in the "Risk Factors" section of CNX's Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Report on Form 10-Q for the three months ended March 31, 2020, each filed with the Securities and Exchange Commission, and any subsequent reports filed with the Securities and Exchange Commission. 

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


Cision View original content to download multimedia:

SOURCE CNX Resources Corporation

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
bottom clear