CNX Resources Finalizes $200 Million Senior Notes Offering to Fund Acquisitions

CNX Resources Corporation, a prominent player in the natural gas sector, announced the successful closure of its private placement totaling $200 million in senior notes. The offering is aimed at bolstering the company’s financial standing and supporting its strategic acquisitions within the industry.

Details of the Senior Notes Offering

As of January 21, 2025, CNX Resources finalized the placement of 7.250% senior notes which are due in 2032. These notes were issued at a price of 100.500% of par, with accrued interest dating back to September 1, 2024, reflecting a yield to worst of 7.104%. This latest issuance adds to the previously issued $400 million aggregate of senior notes under the same indenture established in February 2024.

The newly issued notes will be guaranteed by CNX’s restricted subsidiaries and will share identical terms with the initially issued notes—aside from a few specific conditions. Notably, these two classes of notes will be treated as a single entity for voting purposes under the indenture’s terms.

Strategic Use of Proceeds

The net proceeds from this offering are earmarked for general corporate purposes, which prominently includes financing a portion of the costs associated with acquiring all issued and outstanding membership interests in several subsidiaries of Apex Energy. Specifically, CNX intends to fund Apex Energy (PA), LLC, Apex Energy Minerals, LLC, and Apex WML Midstream, LLC through this capital influx.

It is worth noting that the completion of this offering is not contingent upon the closing of the Transaction involving Apex Energy, nor vice versa, allowing CNX to maintain operational flexibility.

Compliance and Investor Considerations

In alignment with federal securities regulations, the senior notes will not be registered under the Securities Act of 1933. They are exclusively offered to qualified institutional buyers in accordance with Rule 144A, as well as to non-U.S. persons under Regulation S. This regulatory framework is crucial for ensuring compliance and managing investment risks associated with the offering.

About CNX Resources Corporation

CNX Resources is recognized as one of the leading natural gas development and production companies. Located in the energy-rich Appalachian region, the firm has a legacy spanning 160 years. This legacy is underpinned by a robust asset base and innovative technology practices, allowing the company to operate with a focus on sustainability and low carbon intensity.

As of the end of 2023, CNX held approximately 8.74 trillion cubic feet equivalent of proved natural gas reserves, solidifying its position as a key player in the energy market. The company remains committed to utilizing its free cash flow to drive long-term value for shareholders and the communities it serves.

Looking Ahead

Investors and stakeholders should note that the information provided in this release contains forward-looking statements, which convey expectations and forecasts regarding future events and results. Due to inherent risks and uncertainties involved, these projections may significantly differ from actual outcomes.

In conclusion, with the successful closing of its $200 million senior notes offering, CNX Resources is poised to strengthen its operational capabilities while pursuing strategic acquisitions, thereby enhancing its growth trajectory in the competitive landscape of the natural gas industry.